A new survey commissioned by RBC Wealth Management reveals that 73 per cent of younger high-net-worth Canadians think they will make more of an impact on the world than previous generations. Only 48 per cent of older high-net-worth Canadians feel the same way.
The global study, conducted by The Economist Intelligence Unit, surveyed 1,051 high net worth individuals, including 259 respondents in Canada from March to May, 2018. The minimum investable wealth of respondents was US $1 million (CAD $1.29 million). The younger category of respondents is aged 18 to 53 and older aged 54 and up.
Of those who are business owners, 70 per cent believe it is important that their business makes a positive impact on their community. This compares with 58 per cent of their older counterparts, revealed the survey, which was released June 12.
When asked to define legacy, older high-net-worth Canadians are much more likely to use words like 'family' (75 per cent) than younger high-net-worth Canadians (50 per cent). The younger group more often said 'wealth' is the main enabler of their legacy (74 per cent) versus 59 per cent of their older counterparts, the survey found.
The survey showed that social responsibility is important to younger Canadians with 66 per cent saying they're obligated to use their wealth to benefit the broader society, compared to only 51 per cent of the older cohort. In terms of 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.
The way they give is also different, the survey revealed. Older wealthy Canadians are more inclined to make one-off charitable donations (36 per cent) than their younger peers (11 per cent).
More personally involved
"These results are not surprising as younger Canadians tend to be more personally involved and invested in their charitable efforts from start to finish," says Tony Maiorino, Head, RBC Wealth Management Services. "They're not so interested in simply writing a cheque; they want to see it through, monitor the results and actually know that they have made a positive difference." Seventy-nine per cent of the younger group said they assess the results of their giving efforts compared to 43 per cent of older high-net-worth Canadians.
Both generations agreed that they have an obligation to transfer their values to the next generation (76 per cent), however, the younger group feels a much stronger obligation to transfer their wealth (71 per cent) versus 54 per cent of older high-net-worth Canadians.