Half of Canadian parents say they are willing to postpone retirement so that they can continue supporting their grown children.
A survey conducted for BMO Wealth Management reveals that 50% of parents with adult children between the ages of 18 and 34 are prepared to make sacrifices so that they can keep helping them financially. The poll also showed that 33% are ready to save less for retirement, 32% will accept a less comfortable retirement, 22% will take on debt, and 19% will drain some of their retirement savings in order to keep funding their kids.
BMO suggests that Canadian parents may be willing to make these sacrifices because they are anxious about their children's future. In particular, 41% are worried that their children have financial problems caused by debt, 34% think their children may not be able to achieve financial independence, and 31% are concerned that their children are either under- or unemployed. In contrast, half of those surveyed said their own parents provided them with little or no financial support when they were young adults.
“It’s no surprise that so many parents want to ensure their children succeed and live comfortably in adulthood,” says Chris Buttigieg, senior manager of wealth planning strategy at BMO Wealth Management. “However, when parents make their adult children’s needs a priority, it may have a significant impact on their own financial situation and plans for the future, including retirement. A financial professional can help parents understand the long-term cost of the support they provide their children and ensure it is considered in a comprehensive financial plan.”