If people in their 20s or 30s are counting on a baby-boomer’s inheritance to optimize their savings and retirement, they may well be disappointed. According to a recent survey conducted for AXA Canada, some 58% of Canadians who are currently working intend to spend the money they have saved rather than bequeath it to their close relatives.

In comparison, Canadian retirees are more hesitant than working Canadians regarding the bequest question. Thirty-nine per cent of people 65 and older intend to save their accumulated capital to transfer it to their close relatives, versus only 30% of the actives.

“I believe that Canadian actives [workers] are realistic in this,” said Robert Landry, executive vp, life insurance and financial services, AXA, in a news release. “In Canada, life expectancy already reaches 82.6 years for women and 77.8 years for men, and these figures continue to increase. Canadian actives are therefore aware that they will have to make their retirement income last over a longer period of time than is the case for the current generation of retirees. This will certainly have the effect of reducing the intergenerational wealth transfer. People who are 20 to 30 today will probably start planning for their retirement earlier than their elders.”

According to the study, which was carried in 16 countries, Germans are the most likely to want to enjoy their savings. Seventy-eight per cent of German actives and 66% of retirees expect to spend their capital rather than bequeath it. They are closely followed by Australians, with 66% of actives and 59% of retirees expecting to spend what they have saved.

At the other end of the spectrum, Asians and the French are those who most intend to leave a bequest for their offsprings. Only 20% of the Chinese and Japanese actives expect to spend what they have saved. The situation is similar for the French (38%).

The study, whose sample includes both actives and retirees, was carried out among 11,590 persons in 16 countries, from Aug. 14 to Sept. 10, 2006, in Canada, by a consortium of research companies led by the GFK Group and represented by CROP in Canada. The analyzed countries are as follows: Australia, Belgium, Canada, China, France, Germany, Hong Kong, Italy, Japan, the Netherland, New Zealand, Portugal, Spain, the United Kingdom, the United States and Singapore.

Operating throughout Canada, AXA Canada offers its clients, through some 2,300 employees and 4,000 brokers and consultants, an extensive range of damage and personal insurance products and financial services.