Canada is experiencing an unprecedented transfer of wealth, dubbed “a trillion-dollar tsunami,” as aging baby boomers pass down a record amount of money to their children. This significant shift is expected to have far-reaching social and economic implications for the country.

The Chartered Professional Accountants of Canada estimated in 2023 that a staggering $1 trillion of wealth would change hands between Canadian baby boomers and their millennial and Generation X children. This massive transfer of wealth is largely driven by the aging population, with many baby boomers nearing retirement or already retired.

Experts warn that this wealth transfer could exacerbate existing social and economic issues, such as income inequality and housing affordability. On the other hand, it could also create new opportunities for economic growth and development.

As Canada navigates this unprecedented wealth transfer, policymakers and financial experts are urging Canadians to be proactive in planning for the future. This includes having open conversations about inheritance, estate planning, and financial literacy.

Ultimately, the “trillion-dollar tsunami” presents both challenges and opportunities for Canada. As the country adapts to this new reality, it will be important to prioritize financial education, social responsibility, and sustainable economic growth.