Many millennials are still looking for financial support from their parents and this is impacting boomers’ ability to save for their retirements, according to a recent TD survey.
While older Canadians should be focused on preparing for retirement, many find themselves with boomerang children or grandchildren returning home or requiring financial help, which TD calls the "déjà-boom" effect.
"As a parent or grandparent, it's natural to want to help our kids and grandkids who may be facing financial challenges, such as finding full-time employment or paying their day-to-day expenses," said Rowena Chan, senior vice president, TD Wealth Financial Planning. "It's important that this desire to help is balanced with the goals you have when it comes to retirement."
One in four Canadian boomers admit to financially supporting their adult children or grandchildren, says TD. The survey found that 62 per cent of boomers feel that financial assisting their boomerang kids is preventing them from reaching their retirement savings goals and 58 per cent say this situation causes them financial stress.
"Both generations recognize this isn't an ideal situation, which means important conversations need to take place so everyone is on the same financial page," said Chan, who recommends that families in this situation seek the help of a financial planner. "Sitting down with someone who understands different family dynamics is a great first step to set defined goals and establish a financial action plan to best serve both generations."