Over the next two decades, the world will witness one of the largest transfers of wealth in history. Baby boomers, who collectively hold trillions in assets, will pass this fortune down to their children and grandchildren. For millennials and Gen Z, generations that have come of age amid precarious work, soaring housing costs, and rising living expenses, this transfer represents both a lifeline and a stark reminder of deepening inequality.
Globally, nearly $124 trillion in assets is expected to change hands by 2048, with the vast majority flowing from boomers to younger generations. According to the Chartered Professional Accountants of Canada, more than $1 trillion is expected to shift domestically between 2023 and 2026. Much of this wealth comes not from wages but from the housing market, where boomers benefitted from decades of rising real estate values. In cities like Toronto, Vancouver, Hamilton and St. Catharines, this means that young buyers with family support can enter the market, while those without such help are increasingly locked out.
Already, the effects are visible. In 2024, nearly one-third of first-time homebuyers in Canada received financial help from family, up from 20 percent less than a decade earlier. The average gift was $115,000. For those without parental wealth, that kind of support is unimaginable. The result is a generational divide within a generation: some young people are buoyed into homeownership and financial stability, while others, equally hardworking, remain renters in a system where stability feels out of reach.
The uneven nature of this inheritance raises difficult questions about fairness. As one economist put it, society is wired to link cause and effect, so that effort should lead to reward. But in today’s economy, the difference between stability and struggle may come down to “luck of the draw” in who your parents are.
The transfer won’t just shape housing. It’s also likely to change markets and investment priorities. Younger investors are already more skeptical of traditional stocks-and-bonds portfolios. Many are drawn to alternatives like private equity, crypto, and direct company investment, as well as sustainable and impact-focused strategies. This shift could reshape not just where money flows, but also the values underpinning those choices.
But while the scale of wealth is unprecedented, its sustainability is far from guaranteed. History shows that 70 per cent of families lose their wealth by the second generation. Without strong financial literacy and planning, much of this money could evaporate.
All of this is colliding with politics in Ottawa. As Finance Minister François-Philippe Champagne prepares the next federal budget, questions about taxation, housing affordability, and generational fairness are at the forefront. Canada remains the only G7 country without an inheritance tax. Some argue that this policy vacuum will deepen inequality, leaving public programs strapped for resources as private fortunes balloon. Others caution that new taxes would punish families who worked hard to build financial security. The political debate is only beginning, but the stakes are enormous.
At the same time, the federal government must tread carefully. Canada has already seen what happens when policy overshoots. Under the previous, now-scrapped changes to capital gains, many with the means simply held back their capital or moved it out of the country rather than pay more tax. Wealth is mobile, and a blunt wealth tax is not the solution. The challenge for Ottawa is to design policies that protect fairness and opportunity for the next generation without driving investment away.
What is clear is that this generational handoff will deepen existing divides. For those who inherit, it may mean homeownership, entrepreneurship, and financial freedom. For those who don’t, the dream of stability may drift further away. The great wealth transfer will be remembered as a defining economic moment of the 21st century, but also as a test for federal policymakers on whether they can harness it to make opportunity more equitable in its wake.
Daniel Perry is the Director of Federal Affairs at the Council of Canadian Innovators, leading national advocacy and engagement efforts. With experience in consulting and roles at the Senate of Canada, Queen’s Park, and the Canadian Criminal Justice Association, Daniel has helped political leaders and clients across various sectors achieve their public policy goals. A frequent media contributor and seasoned campaigner, Daniel holds a Master of Political Management from Carleton University.
