Some Canadian grandparents supporting kids are risking their own retirement

Nearly 1 successful 3 Canadian grandparents providing financial support to younger generations are perchance risking their ain retirement, caller polling released Wednesday by Royal Bank of Canada suggests.

The “grandparents edition” of RBC’s 2024 Family Finances Poll shows that 21 per cent of those surveyed are supporting astatine slightest 1 big kid financially, while 30 per cent person provided money to their grandkids.

The study is based connected online polling information from April 4 to 10 among 1,508 members of nan Angus Reid Forum aged 55 and older. For comparison, a akin sample size would person a separator of correction of +/- 2.5 percent points astatine a 95 per cent assurance level, nan study said.

Among those providing support to their kids and their kids’ kids, a mostly of respondents (54 per cent) said they are sacrificing their ain savings to supply assistance. Some 52 per cent said they person made aliases would request to make “significant manner changes” to support up their support.

Some 33 per cent said they’re worried they’ll tally retired of money themselves trying to screen nan costs of their family.

The RBC study said that only 1 successful 5 respondents person considered really their financial support would effect their ain status plans.

In position of what older Canadians are covering, 70 per cent said their big children are asking for thief pinch basal costs for illustration nutrient and clothing. More than half (54 per cent) are providing that money connected a monthly basis.

For grandchildren, support is chiefly for acquisition expenses (39 per cent) followed by mundane surviving costs (30 per cent).

“While it’s not different for grandparents to supply financial assistance to younger generations, nan melodramatic quality coming is this support has go a necessity, alternatively than simply a desire to help,” Craig Bannon, head of RBC’s Financial Planning Centre of Expertise, said successful a statement.

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Bannon went connected to opportunity grandparents mightiness not beryllium anticipating this “financial drain” arsenic they get person to retirement.

“And for those who are already retired and surviving connected a fixed income, these added expenses tin airs an contiguous risk,” he said.

According to nan poll, immoderate 43 per cent of grandparents said they don’t cognize really overmuch money they person provided to their big children, pinch 34 per cent saying nan aforesaid for grandchildren.

Beyond regular essentials, younger generations are progressively turning to parents and grandparents for thief breaking into nan lodging market.

A report from CIBC past period showed that 31 per cent of first-time homebuyers person received financial gifts from family truthful acold successful 2024, up from 20 per cent successful 2015. On average, nan emblematic purchaser is getting $115,000 from family, a 73 per cent summation supra 2019 levels.

Ipsos polling conducted exclusively for Global News successful June showed that 78 per cent of non-owners now consciousness owning a location is only for nan rich, a fig that’s down 2 percent points from April.

Are you supporting your kid aliases grandchild financially? Is it causing accent successful your finances? We’d emotion to perceive really you’re coping pinch these challenges and whitethorn scope retired for a early story.