BMO New Canadians Study: More Than Half of Immigrant Parents Believe Their Children Will Be Better Off in Canada
• Ninety-five per cent of New Canadians think it is likely their children will obtain a post-secondary education
• Two thirds are more optimistic about Canada’s economy than the economy in their native country
• Sixty-five per cent of immigrants consider it a priority to leave as much money as possible to their children, yet fewer than a third have a will
BMO Wealth Management today released the results of a study on how New Canadians feel about their children’s future in Canada, as well as their approaches to estate planning.
The study is the second in a series, Making the Financial Transition, which examines a variety of financial issues related to New Canadians (those who have moved to Canada fewer than 10 years ago).
According to the study, 58 per cent of parents who have immigrated to Canada feel their children will be better off here than they would have been if they had stayed in their native country; 33 per cent say they will be much better off. Further, New Canadians consider it likely that their children will:
- Obtain a post-secondary education (95 per cent)
- Get a good job (93 per cent)
- Buy a home (92 per cent)
Immigrants reported that they have these expectations because they believe that, in Canada, their children will have access to:
- Better education (72 per cent)
- A safer environment (61 per cent)
- Better job opportunities (55 per cent)
- Good government programs (52 per cent)
In addition, the study revealed that two thirds (63 per cent) of New Canadians are more optimistic about Canada’s economy than the economy in their native country; only 13 per cent feel the opposite.
“It’s encouraging to see that immigrants to Canada are confident their children will be successful and feel that the sacrifices they made to come to this country will pay off,” said Charyl Galpin, Head, BMO Nesbitt Burns, a part of BMO Wealth Management. “All parents want the best for their kids and New Canadians are no exception. It’s critical to develop a customized financial plan that can include components such as saving for a child’s education or helping him or her with a down payment for a first home.”
Where There’s a Will, There’s a Way
The study also looked at whether parents who have immigrated to Canada prioritize leaving money to their children:
- Sixty-five per cent consider it a priority to leave as much money as possible for their children.
- Twenty-nine per cent say they would like to do so, if possible.
- Only 4 per cent do not think it is a priority at all.
New Canadians’ desire to pass on savings to their children are not necessarily reflected in their financial plans, with 42 cent having no legal documents related to estate planning at all. Only 32 per cent have a will and 29 per cent have a power of attorney.
“Our study clearly shows that New Canadians put a premium on leaving a financial legacy for their children,” said Ms. Galpin. “In order to make this a reality and minimize complications, it’s critical to have a well-thought-out estate plan in place which includes a will and power of attorney. Even if you feel that the amount you leave to your children will be modest, a will is still essential to ensuring your wishes are carried out correctly with as little stress imposed on your loved ones as possible.”
The survey was conducted by Pollara between February 4th and February 19th, 2015 with an online sample of 507 people who have immigrated to Canada in the past 10 years. The margin of error for a probability sample of this size is ± 4.4%, 19 times out of 20.
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About BMO Financial Group
Established in 1817, BMO Financial Group is a highly diversified financial services provider based in North America. With total assets of approximately $633 billion as of April 30, 2015, and more than 47,000 employees, BMO provides a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, Wealth Management and BMO Capital Markets.
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