Next generation prioritize impact of their money.
TORONTO: The Canadians' definition of legacy is shifting from value to values, as the next generation of high-net-worth1 Canadians increasingly prioritize the impact of their money throughout their lives and beyond.
Seventy-three percent of younger2 high-net-worth Canadians say they will make more of an impact on the world than previous generations while only 48% of older high-net-worth Canadians feel the same way. Of those who are business owners, 70% feel it's important that their business makes a positive impact on their community, compared with 58% of their older counterparts. These insights are from a new survey3 from The Economist Intelligence Unit (EIU), commissioned by RBC Wealth Management.
And the younger group more often said 'wealth' is the main enabler of their legacy (74%) versus 59% of their older counterparts. But the generations are much closer on one point - their desire to leave a different legacy than their parents (71% of younger Canadians and 65% of older ones agree). For the wealthiest Canadians4, that number rises to 79%. When asked to define legacy, older high-net-worth Canadians are much more likely to use words like 'family' (75%) than younger high-net-worth Canadians (50%).
Leanne Kaufman, Head, RBC Estate & Trust Services, said, "The concept of legacy has evolved a lot over the past several years so it makes sense that both younger and older high-net-worth Canadians are looking at different options than their parents. The trend is moving towards 'impact' in a way we haven't seen before."
Social responsibility is important to younger Canadians with two thirds (66%) saying they're obligated to use their wealth to benefit the broader society, compared to only 51% of the older cohort. The generations diverge again on where to direct their efforts. Older high-net-worth Canadians prioritize poverty reduction and religion while the younger group focus on children/youth, human rights and scientific endeavours such as space exploration. Even the way they give is different: Older wealthy Canadians are more inclined to make one-off charitable donations (36%) than their younger peers (11%).