Nearly 60% of retirees are supporting adult children financially, survey finds
The majority of Canadian retirees are supporting their adult children financially, which they say is having a negative impact on their own finances, a new report has found.
According to Fidelity Investments Canada’s annual retirement report for 2024, 59 per cent of retirees report helping their non-student adult children with both day-to-day expenses and big-ticket items like home purchases, weddings and even education savings for their grandchildren.
The report adds that 82 per cent of retirees indicate that inflation is having a negative financial impact on them in retirement. The cost of living is also having an impact on people’s ability to plan their retirement, as 43 per cent of pre-retirees say the cost of living is delaying their scheduled retirement.
“Achieving your retirement dreams is possible with a strong plan in place,” Peter Bowen, vice-president of tax and retirement research at Fidelity, said in a statement Tuesday.
“Despite uncertain economic times, working with a financial advisor, developing a written financial plan, sticking to that plan, and especially staying invested can help Canadians live the retirement they envision. In this year’s report, we found that planning for additional expenses for loved ones and incorporating that into a financial plan stood out as adding value.”
The report said Canadians “remain resilient and optimistic” about retirement despite these challenges. It said 88 per cent of Canadians with a written financial plan feel financially prepared for retirement, compared with 56 per cent of those without one.
However, it added that only 27 per cent of Canadians have a written financial plan, of which 85 per cent said they worked with a financial advisor to create a plan.
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