Many Canadians are sacrificing their own financial well-being to provide financial support to their children, according to a new report by BMO Wealth Canada.
The report, The Family Bank – a source of comfort for everyone, found that 50% of Canadian parents with children aged 18-34 are willing to retire later than they had planned.
A third (33%) said they save less for retirement, 32% said they have a less comfortable retirement, 22% said they take on debt, and 19% said they withdrawn from their retirement savings.
Among respondents, Canadian parents are concerned that their children will have financial problems caused by debt (41%), difficulties achieving financial independence (34%), and insufficient or lack of employment (31%).
“It’s no surprise that so many parents want to ensure their children succeed and live comfortably in adulthood,” said Chris Buttigieg, senior manager, 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.”