High net-worth (HNW) Canadians are prioritizing protecting their wealth over growing their wealth, according to an annual survey commissioned by RBC Wealth Management.
The survey found that 53% of respondents said that preserving their wealth was their most important financial goal, while only 34% said increasing their wealth was most important.
When asked what factors posed the biggest threat to wealth preservation, 48% of respondents rated Canadian tax changes as their biggest concern, followed closely by global economic uncertainty (46%) and the increased cost of living (45%).
“While investment and portfolio management remain a priority, increasingly, we find that our high-net-worth clients are asking us for guidance and support in the areas of tax strategy, wealth preservation, estate planning and philanthropy,” Tony Maiorino, head of RBC Wealth Management Services, said in a release.
Almost two-thirds (63%) of HNW clients said they are more attentive to their portfolios than ever before due to the current economic cycle, with 76% agreeing that “today’s market requires investors to be more flexible and more responsive,” the release said.
The survey also found that the gap between how younger and older HNW clients approach their investments has widened.
Seventy-three per cent of younger HNW Canadians said personal wealth creation should be balanced with ensuring opportunities to accumulate wealth across society, compared to 66% of older HNW Canadians.
While 62% of Canadian respondents agreed it is important to invest ethically, younger respondents were much more likely (56%) to consider environmental, social and governance factors than older investors (27%).
RBC Wealth Management commissioned the Economist Intelligence Unit to survey 1,051 high net-worth individuals (HNWIs) with at least $1.35M in investable assets, 522 adult children of HNWIs and 521 respondents who are not yet HNWIs but who have a minimum income of $134,000. The study took place from May to June, 2019, and included 614 respondents in Canada.