A recent survey finds that 47% of Canadians aged 45 to 54 do not plan to fully retire, and will work to remain active or will earn money to survive.

The national survey of over 1,500 Canadians was jointly conducted by Secor Consulting and Leger Marketing.

“Understanding the ‘ins and outs’ of retirement saving options, insurance, wealth transfer, inheritance and tax implications, coupled with longer life expectancy have created uncertainty for Canadians. This presents an opportunity for innovative financial institutions to ‘demystify’ wealth transfer and retirement savings to help Canadians better understand what is required to maintain their current lifestyle in retirement,” says Louis Regimbal, partner at Secor.

The survey results illustrate that as Canadians become older, maintaining their current lifestyle becomes more important. Eighty-six per cent of respondents between 45 and 54 years of age highlighted maintaining their current lifestyle as very important. Over time, the worry that this will not be possible also increases.

The survey also found that most Canadians believe that they will be almost 60 by the time they receive an inheritance. According to Dave Scholz, vp at Leger Marketing, “Canadians expect to inherit later in life, when their financial needs shift from paying-off debts to supporting themselves in retirement.” Forty per cent of Canadians age 25-64 plan to use their inheritance to supplement their income and investments.

There is also a segment of the population that feel they will not have the time to spend their inheritance or will choose to save it for their children. Twenty per cent of respondents over age 65 said that they would save their inheritance for their heirs. “We refer to this as the ‘Prince Charles effect’“, says Jean-Pierre Sablé, partner at SECOR Consulting, as Prince Charles may be passed over in royal succession. “In this case, wealth will pass between three generations in transferring to the next generation. Yet this need is not being adequately met by financial institutions today.”

What do these trends mean for Canadians and their financial advisors? “The implication for both Canadians and their financial advisors is the need to look at multi-generational relationships, products and services in a more holistic way,” says Sablé.

Financial advisors also have an opportunity to better address inheritance. Only 50% of Canadians across all age, ethnic and wealth segments are discussing money matters with parents or children. Fifty-eight per cent identified themselves as the person who prompted discussions concerning inheritance, while only 4% said it was their financial advisor who initiated the discussion.