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Nearly half of Canadians approaching retirement consider their legacy, Investors Group poll finds

Family still first in line for inheritance

Winnipeg, MB – December 4, 2008 – Nearly half of Canadians 55 and older have thought about leaving a life legacy as a way to affect positive change, according to a new poll by Investors Group. Forty-seven per cent indicated they had either thought about leaving a life legacy (26 per cent) or had plans in place for a legacy (21 percent).

“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, Community Affairs, of Investors Group. “Canadians of all ages have core values of generosity and a willingness to help others – in fact, according to Statistics Canada, 85 per cent of people over the age of 15 give a financial donation to a charity or other non-profit organization. The next logical step involves planning for the future to ensure that their legacy comes true.”

Estimates of intergenerational wealth transfers over the next 20 years have ranged as high as $1 trillion. Poll results indicate 68 percent of Canadians plan to leave their estate to family members. However, one-in-five Canadians (21 percent) of all ages said they plan to leave a family inheritance and provide a financial legacy.

The legacy Canadians plan to leave to charitable and non-profit organizations will average about 28 per cent of their financial assets according to the Investors Group poll, regardless of age. Among Canadians 55 and older, 42 percent said they plan to leave up to one-tenth of their financial assets while another 49 percent 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 and the potential rewards have never been greater.”

In envisioning their hopes for leaving a legacy, nearly half (46 per cent) of those 55 and older are motivated by helping to make the world a better place, and 43 per cent want to help those less fortunate. Twenty-eight per cent want to help their community grow and improve.

Some Canadians of all ages are planning to establish a scholarship or bursary (15 per cent), or donate a permanent fund that will regularly disburse money (13 per cent). At 27 per cent, young people between the ages of 18-24 are most likely to plan to establish a scholarship.

“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.”

A total of 2,002 surveys were completed with Canadian adults between September 18th and September 24th 2008, using the Harris/Decima eVox online panel. The data is weighted in tabulation to replicate actual population distribution by age and sex within each region according to the 2006 Census data.

Investors Group, founded in 1926, is a national leader in delivering personalized financial solutions to Canadians through a network of over 4,400 Consultants located throughout Canada. In addition to an exclusive family of mutual funds and other investment vehicles, Investors Group offers a wide range of insurance, securities, mortgage and other financial services. Investors Group is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada’s premier financial services companies with $102 billion as of November 30, 2008 in total assets under management.

For more information contact:
Ron Arnst
Media Relations
(204) 956-3364
ron.arnst@investorsgroup.com		 Teresa Pagnutti or Meredith Adolph
Environics Communications
416-969-2721 / 416-969-2667
tpagnutti@environicspr.com / madolph@environicspr.com