Ballin Boomers

Canadians have been told by pension experts that we are not saving enough for our retirement.Β Since we’re all living longer, we’ll also need more money than our parents did by the time we’re ready to quit our jobs. But one silver lining that people often overlook is that we’ll also be getting more inheritance than in any previous generation.2013_07_boomers2

The average net worth for people usually peak when they’re around the age between 50 and 65. This group of people today are known as the baby boomers πŸ™‚ It is estimated that boomers in the United States will receive $8.4 trillion in inheritances according to the Center for Retirement Research at Boston College. That’s an average of $300,000 per inheriting household. That could mean the difference between retiring at 55 or 65. In last week’s post I mentioned that Canadians have a higher net worth than Americans, so good for us πŸ™‚ Plus Canada doesn’t have any estate tax so that’s even better. Most Canadians (68%) own our own homes, and the average price of a home is $386,000. Even if boomers don’t receive any cash from their parents there’s a good chance they’ll inherit some real estate.2013_07_boomers3

Not everyone is lucky enough to receive an inheritance, but more often than not people do so it should be worked into a financial plan.Β It might be uncomfortable speaking about inheritance with an elderly parent but estate planning is important for the whole family. More people today will receive an inheritance than a company pension, yet lots of people don’t address inheritance as part of their retirement planning. There has never been a better time to be a baby boomer πŸ™‚Β Β The kids have moved out of the house. The government sends you cheques if you qualify for OAS or CPP/SSI. You have more free time than you know what to do with. And most likely there will be some windfall coming your way πŸ™‚ Almost makes me wish I was a boomer. Okay, maybe not πŸ˜›2013_07_boomers1

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Random Useless Fact:Β It takes 2400 liters of water to produce 1 hamburger from scratch

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theoutliermodel
theoutliermodel
07/29/2013 8:47 pm

I wish my parents were receiving some sort of inheritance! Instead, they’re asking me for money! :p

Canadianbudgetbinder
07/30/2013 4:46 am

I know someone who is a boomer that just received money from her parents one of whom passed away many years ago and another who has been in a home for many years and is nearing 100 years old. She turned around and put the money into a TFSA since she had not contributed to it.

Financial Samurai
07/30/2013 8:47 am

I’ve never asked about inheritance, and I don’t want to know.

But mathematically you are correct. There will be huge windfalls to Gen X and maybe Gen Y.

Budget and the Beach
07/30/2013 12:14 pm

I had no idea Canadians has more in retirement than people in the US. Damn we better get going!

Lauren @Cheapstudents.ca
07/31/2013 5:06 am

First off I love all of the meme’s, pretty funny additions to the post. At first I thought this was going to be a post about boomers and their possible burden on the system in the future, but it was a more positive spin on things. I don’t believe I will be getting an inheritance but I won’t be inheriting debt either, makes my retirement planning simpler.

John S @ Frugal Rules
John S @ Frugal Rules
07/31/2013 6:20 am

Why doesn’t it surprise me that Canada does not have an estate tax? πŸ™‚ I wish we could learn a few things from our neighbors.

Vicky
Vicky
08/02/2013 3:59 pm

I am definitely not expecting any inheritances, and are definitely in the ‘reverse’ inheritance position, especially with “somone’s” parents. πŸ˜› All I know that credit card liability does not follow the kids. πŸ˜›

Maybe I just need to find someone with the average $300K inheritance and become good friends!:P jokes!

Another interesting article, as always!

lucky shoe
lucky shoe
08/20/2013 10:59 am

I am a baby boomer and my dishonest brother and my father’s lawyer have stolen over $300,000 from my family’s trust.
I feel this is going to be the biggest epidemic that Boomer’s are facing. I read a great book “Trust Me: every Baby Boomer’s Nightmare”. I wish I had read this book before my parents had died. It really gives baby boomers ideas on how to protect their family trust, and what to watch out for. I highly suggest buying this book if your family has a trust.