Retirement and Wealth Transfer Market Opportunities in Canada
This carve-out of Investor Economics flagship research leadership report—the Household Balance Sheet Report—sheds light on the key transformational trend facing the financial services industry, with particular focus on the wealth management industry: the march of the great baby-boomer generation towards retirement. While the focus of the narrative is on Canada, the parallel demographic trends apparent in the US ensure high relevance of this research to the US audience.
The transition of the baby boomers to and through the accumulation stage has transformed the Canadian wealth management industry. Their transition into retirement is expected to have a similarly outsized impact as the retirement opportunity looms large for Canadian distributors, product manufacturers and asset managers.
Section 3 of the Household Balance Sheet: Retirement, Payout and Inheritanceexplores the concept of retirement in depth as it applies to the Canadian market, highlighting opportunities and challenges faced in serving an aging population. A great risk-transfer is underway in Canada as defined-benefit coverage of the working population continues its descent, ushering in an age of the ‘self-guided’ retirement. With anxiety over retirement rising, opportunities are being created for advisors and product manufacturers to market solutions tailored to the payout phase.
Wealth management firms, however, would do well to look beyond retirement planning to estate planning as over the next ten years $800 billion of wealth will be transferred in Canada, upending the industry as client relationships come up for grabs. This section is an important read for distributors, product manufacturers and asset managers hoping to map out and better understand the needs of future inheritors in Canada.
While the Canadian market is unique in many ways, the retirement and estate planning conundrums faced by Canadians will look similar to a global audience. Lessons learned in Canada therefore may provide global retirement leaders with a new perspective on approaching their home market. For more information contact Daniel Bederman at Daniel@iei.ca.