Nearly half of Canadians 55 and older are considering leaving a life legacy, and financial advisors should talk to their clients about the options available, according to Investors Group.

A recent poll by Investors Group shows that 47% of Canadians 55 and older had either thought about leaving a life legacy or had plans in place for one.

“Approaching the retirement years is a main trigger point for planning to leave a legacy and give back to the community,” said Richard Irish, vice-president of community affairs at Investors Group. “Canadians of all ages have core values of generosity and a willingness to help others.”

Irish points to Statistics Canada research showing that 85% of people over the age of 15 give a financial donation to a charity or other non-profit organization.

Intergenerational wealth transfers over the next 20 years could be as high as $1 trillion. Of more than 2,000 Canadians surveyed by Investors Group, 68% plan to leave their estate to family members and one in five Canadians of all ages plan to leave a family inheritance as well as provide a financial legacy.

The legacy Canadians plan to leave to charitable and non-profit organizations will average about 28% of their financial assets according to the Investors Group poll, regardless of age. Among Canadians 55 and older, 42% said they plan to leave up to one-tenth of their financial assets while another 49% said they would donate between one-tenth and one-half of their wealth.

“Planned giving is an important part of financial and estate planning, as well as a great way to help important organizations and their work,” said Irish. “Charities have lots of room for growth in the estate planning of the nation.”

Nearly half of those 55 and older are motivated to leave a legacy by the desire to help make the world a better place, while 43% want to help those less fortunate and 28% want to help their community grow and improve.

Investors Group encourages financial advisors to discuss with clients the various options related to leaving a legacy.

“There’s great potential for individuals to leave a legacy in a thoughtful, meaningful manner, but Canadians might not realize all the options that are available to them,” said Irish. “If charities, financial advisors and investors start to have conversations early in the financial planning process, the foundation for the future will be laid.”

IE