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Canadian baby boomers stand to inherit $750 billion in the next 10 years: CIBC


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TORONTO, June 6, 2016 /CNW/ - Baby boomers in Canada will inherit an estimated $750 billion over the next decade in the country's largest-ever transfer of wealth, one that is expected to alter the retirement landscape and have potentially significant economic impacts, finds a new CIBC Capital Markets report.


Canada currently has just over 2.5 million people over the age of 75, of which close to 45 per cent are widowed, the report says. The number of elderly people in Canada today represents a 25 per cent jump over the level seen a decade ago.


"We estimate that the coming decade will see close to $750 billion exchanging hands, almost 50 per cent more than the estimated amount of inheritance received over the past decade," says Benjamin Tal, Deputy Chief Economist, CIBC Capital Markets, who authored the report The Looming Bequest Boom – What Should We Expect? "The transfer is estimated to boost the asset position of Canadians 50-75 years old by no less than 20 per cent."


There will be even more Canadians aged 75+ in the next decade, who will not only be the largest cohort of that age group on record, but also wealthiest, with an estimated total net worth north of $900 billion.


He expects this shift in wealth, coming when boomers themselves are approaching retirement age, can potentially impact Canada's retirement landscape as well as many facets of the economy, including labour force participation, the real estate markets and transform income inequality into wealth inequality.

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What the author «expects» (last paragraph of article) is already happening. It will «simply» intensify.


Oh, but not so simple... What we need to know is HOW the impact will manifest itself. Then it gets (far) more complicated. For some reasons, I am not prepared to invest the required efforts here to dig into this broad subject matter, but I might suggest you (those interested) search for current (and future) related articles/studies. Besides sources within the English-speaking community (USA, UK, Canada, Australia, etc.), interesting articles can be found in medias in other languages, some of which provide an English shortened version of their main articles. Et finalement il y a les textes de France ou en version française d'organismes internationaux comme l'OCDE. But in all cases, try to focus beyond the obvious--the huge inter-generational transfer of wealth. For example, if real estate is your focus, include that term in your search. Others may also be interested in the implications for social and fiscal policies. Beware that many studies are rather of the «academic type» which tend to be too general in their findings and recommendations, which is why I am also interested in anecdotal reports (typically found in daily newspapers), which can provide a more direct (even if partial) view of reality as it happens at a given time and location.

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