Is supporting your adult child impacting your plans to retire?
A new poll released Thursday by the Royal Bank of Canada suggests that a majority of parents in B.C. are paying the bills for their adult children, even though it may impact their life after retirement.
The survey asked more than 1,000 parents across the country about their main spending habits ahead of retirement.
The poll found that average B.C. parents spend about $6,800 annually on their children aged 18 to 35. That’s compared to the national average of roughly $5,600.
About 95 per cent of poll respondents said they first started helping their child once they turned 18. Of those respondents, 81 per cent said they are still writing cheques in 2019.
More than 85 per cent of parents surveyed said they are happy to be in a position to offer support, but not everyone feels so comfortable.
About 44 per cent said they are worried how lending a monetary hand will hurt their retirement plans.
RBC financial planner Brigitte Felx said in a news release that it’s important to have a frank conversation about plans and expectations around money as children grow up.
“It will be much better for everyone in the long run, if you can openly discuss your retirement goals alongside their financial needs,” she said.
Living expenses are the top constraint pushing children to the ATM of Mom and Dad, the poll said.
Eighty per cent of respondents said they believe their children are trying to become financially independent, while 94 per cent said they feel young adults face a number of challenges when first living on their own.
B.C. parents reported that most of their financial support was used to fund their children’s living expenses.