Over 18s who don’t fly the family nest are affecting their parents’ retirement plans according to a new survey.
Canadian bank CIBC polled over 1,000 people who were financially supporting their adult children. Two thirds of respondents said that their children continue to depend on their financial support, with 25 per cent saying they spend over $500 every month to help cover their children’s expenses.
Twenty per cent claimed that having to provide support for their children has caused them to delay their retirement, and 14 per cent said that they have had to delay plans to sell or downsize their home. A further 47 per cent said they have had to dig into personal savings and 44 per cent reported that helping out has affected their ability to travel or spend money on themselves.
Data from the 2011 Canadian census revealed that approximately 42 per cent of people in their twenties lived at home. This is a ten per cent increase since 1991, and 15 percent from 1981. Reasons for the increase include an uncertain job market, young adults putting off marriage until later and the trend for immigrant families to live in multi-generational groups.
The survey found that 71 per cent of parents offered their children free room and board as the most straight forward means of support, but 47 per cent paid for their grocery shopping and household expenses, 35 per cent paid for mobile phone bills and 23 per cent helped with car payments.
Some parents prefer to help their children find their own accommodation, with 17 per cent of those polled saying they contribute towards rent, while 12 per cent help their kids address their debts.
Karen Kramer, Executive Vice President of Retail and Business Banking at CIBC, said:
“These extra costs can be a burden that delays or prevents parents from meeting financial goals such as retirement, and that’s why both parents and kids need to be mindful of their budgets.”
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