Overly rosy estimates of baby boomer wealth mean the push is on for advisors hoping to claim a chunk of the estate planning business.
“Add it all up, and there are some 5.8 million working-age Canadians who will see more than a 20-per-cent drop in their living standards upon retirement,” Benjamin Tal, deputy chief economist at Canadian Imperial Bank of Commerce said in a report.
“That’s why the time to act is now.”
Many are calling for improvements to the CPP, with the Conservative government proposing voluntary contributions to the federal plan. PRPPs have been passed in British Columbia, Alberta, Saskatchewan, Quebec and Nova Scotia. Ontario has also introduced the ORPP amid much consternation.
The analysis suggests advisors may have to scrap to win a larger piece of the estate planning pie, with fewer Canadians likely to have as much money as many initially thought. For more on estate planning download our comprehensive fact sheet.
Currently only 30 per cent of Canadians have an estate plan. But while boomers maybe struggling towards the retirement they want, new generations may be seeing the value of an estate plan.
“The concept of estate planning has really migrated from not just being high net worth individual need or an older individual’s need but also a Gen X need as well,” said Chris Karram, Co-CEO and financial advisor at SafeBridge Financial Group.
“We’re seeing some of the struggles our parents are dealing with and some of the thoughts they’re having to work through in terms of estate planning and we’re trying to avoid that. I think we’re seeing a much larger acceptance of estate planning.”
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