💡Bridging the Wealth Gap: What Investors Need to Know About Canada’s Generational Shift
Canada is witnessing a historic wealth divide: Baby boomers hold nearly 50% of the nation’s wealth, while millennials—despite being the largest workforce segment—own just 10%¹. This imbalance isn’t just social; it’s reshaping markets, consumer trends and investment strategies.
➡️Why is this happening?
Real estate appreciation: Boomers bought homes when prices were modest and mortgage rates, though high, were offset by rapid wage growth
Public sector pensions and benefits: Many boomers were able to retire with defined benefit pensions — a luxury far less common today
Financial bull markets: From the 1980s onward, boomers benefited from one of the longest stock and bond market rallies in history, right as many of them entered the workforce
➡️What does this mean for investors?
Changing consumer demand: Millennials prioritize renting, experiences and digital services. Expect growth in sectors like tech, affordable housing and experiential services.
Fiscal pressures: Aging boomers will increase demand on public pensions and healthcare, potentially driving tax changes that impact portfolios
Wealth transfer ahead: Over $1 trillion will shift to younger generations in the next 20 years, influencing asset classes and market dynamics
➡️What can you do about it?
Balance defensive and growth assets: Combine income-generating investments with innovative sectors to stay resilient
Plan for policy risk: Political responses to wealth disparity may affect taxation and regulation—factor this into your strategy
Invest in tomorrow’s economy:
- Housing demand from millennials entering the market
- Real assets like infrastructure and farmland for inflation hedging
- Thematic plays in clean energy, biotech and AI
- Digital assets as decentralized finance gains traction
Rather than viewing the generational wealth transfer as a challenge, it can potentially be a roadmap for what’s next. By understanding the values, behaviours, and constraints of both generations, investors can make smarter, more comprehensive portfolio decisions. Because in the end, whether you’re 28 or 68, the market rewards those who look forward.
To lean more, read the full article by Jose Paul Alancherry, CFA ,Vice President, Retail Client Portfolio Management, TD Asset Management Inc.
¹Source: Statistics Canada, The Daily: Survey of Financial Security, 2023.
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Administration Assistant
11hThis is such an important topic. The generational wealth gap isn’t just a statistic—it’s shaping how markets behave and where opportunities lie. Boomers benefited from a perfect storm of real estate appreciation, strong pensions, and decades of bull markets, while millennials face higher costs and fewer safety nets. What really stands out is the $1 trillion wealth transfer coming over the next 20 years. That’s going to change everything—from housing demand to investment trends in sectors like clean energy, AI, and digital assets. I like the point about balancing defensive and growth assets while planning for policy risk. Taxation and regulation will likely evolve as governments respond to these disparities. For investors, the takeaway is clear: understanding generational behaviors isn’t optional—it’s strategy. Curious to hear others’ thoughts: which area do you think will see the biggest impact from this shift—housing, tech, or alternative assets?
Diagnosing human & operational misalignment to help leaders break patterns, align identity & behaviour & engineer emotionally intelligent, truth-driven systems elevating culture, decision-making & sustainable performance
17hThe wealth gap isn’t just a social issue — it’s becoming a market signal. Boomers built wealth in a world of asset inflation and defined-benefit stability. Millennials are navigating the opposite: higher entry costs, higher debt, lower security. That shift is already reshaping consumption, risk tolerance, and where capital flows next. Two things matter most: 1️⃣ The trillion-dollar transfer will push more wealth into tech, experiences, real assets, and alternative investments. 2️⃣ Policy risk = investment risk. Tax shifts, housing reforms, and pension pressure will directly influence returns. Smart portfolios now blend stability with sectors tied to millennial demand — housing, infrastructure, clean tech, AI, and digital financial services. The gap isn’t just a challenge. It’s a map of where the next decade of opportunity lives.
Human Resources Executive/Educator Author Researcher/Admin Speaker Guru at Aflac, Pre-Paid Legal & Federal HCM Capital Editor ESOMAR Researcher.
19hMarket impulse Wealth Gaps With Tariff Of Investors Deficits
Chief Executive Officer at UN Office of the Future
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