Wednesday, September 14, 2016

The rich are staying rich

 Ultra high net-worth individuals (UHNWIs) — defined as people who hold at least US$30 million in assets — are expected to hand US$16 trillion over to their descendants over the next three decades, financial research firm Wealth-X reported last year.

And much of that — US$3.9 trillion — is expected to be handed down in just the next decade by an estimated 14,000 UHNWIs, says "Preparing for Tomorrow: A Report on Family Wealth Transfers."

CIBC estimates that the Canadian Baby Boomers are set to inherit $750 billion over the next decade, in what's being called the "largest intergenerational wealth transfer in Canadian history over such a period of time." As many as 2.5 million Canadians over the age of 75 have a collective net worth of $900 billion or more. Most beneficiaries are aged anywhere from 50 to 75 years old.

For the rest of us, a Statistics Canada study from earlier this year found that income mobility, or the ability to move into a higher earning class, is proving more difficult for this generation than the last one.

 In other words: The rich are staying rich, and lower-income people are staying right where they are.

No comments: