Quebec parents report they're happy to provide support,
but is retirement in jeopardy?
MONTREAL, Feb. 28, 2019 /CNW/ - Quebecers are funding their children's lives into adulthood with the money they may need for their own retirement, according to the 2019 RBC Family Finances Poll.
In fact, the vast majority (94%) of Quebec parents with adult children between the ages of 18 and 35 report they have financially supported their kids in some capacity into adulthood, with 41% stating that they are still subsidizing their 30- to 35-year-olds' lives. While many of these parents (92%) say they are happy they are in a position to provide this support, one-in-five admit they are worried about the impact that it will have on their retirement savings (22%) and fear it may prolong their retirement plans entirely (21%).
"For families in Quebec, it is natural to put their children first, but it is also important to balance financial needs," advised Brigitte Felx, Financial Planner, RBC. "For parents supporting their adult children, it's a good idea to pause and take a look at your whole financial picture and then find a realistic way to help without impacting your future."
Mme Felx added, "You can use this as an opportunity to have a frank conversation about financial needs, plans and expectations with your adult children. It will be much better for everyone in the long run, if you can openly discuss your retirement goals alongside their financial needs."
The majority of parents in the province believe their children are trying to become financially independent (80%), but that it is very difficult for young adults to make ends meet in today's world (74%), and a third (33%) feel that their children are struggling to do so.
On average, Quebecers who still support their 18- to 35-year-old adult children estimate they are spending an average $3,986 per year to provide this support (compared to $5,623 on average across Canada). These payments seemingly do not decrease over time, with parents who still support their 30- to 35-year-old children reporting they are spending an average of $3,901 a year (vs. $3,729 nationally) on financial support. As examples, Quebec parents report funding the following, in some capacity, since their children reached the age of majority:
- education costs (71%)
- living expenses – including mortgages, rent and cable bills (59%)
- cell phone bills (46%)
"Any additional costs can impact your potential retirement income – and the closer you get to retirement, the bigger the impact," stressed Mme Felx. "There are so many resources available today – online and in person – that can help you find ways to continue to build your retirement savings while managing your day-to-day expenses. A good first step would be to reach out for financial advice to get a plan in place that gives you the flexibility you need to save for your future while taking care of your costs today."
National and Regional Findings
RBC Family Finances Survey: Parents of children aged 18-35 |
QC |
NAT'L |
BC |
AB |
MB/SK |
ON |
AC |
Yearly amount spent on average |
$3,986 |
$5,623 |
$6,818 |
$4,977 |
$4,806 |
$6,694 |
$3,941 |
I have helped my child(ren) pay, |
94% |
96% |
95% |
97% |
97% |
97% |
100% |
•…for their education… |
71% |
69% |
60% |
65% |
66% |
72% |
63% |
•...for living expenses… |
59% |
65% |
73% |
66% |
63% |
66% |
74% |
•… for cell phone bills… |
46% |
58% |
58% |
57% |
57% |
63% |
68% |
I currently help my child(ren) |
68% |
76% |
81% |
77% |
68% |
79% |
81% |
My child(ren) are trying to |
80% |
85% |
80% |
90% |
90% |
88% |
87% |
My child(ren) are struggling to |
33% |
53% |
62% |
59% |
55% |
59% |
57% |
I feel that it is very difficult for |
74% |
86% |
94% |
87% |
88% |
88% |
90% |
I am concerned that supporting |
22% |
36% |
44% |
37% |
47% |
41% |
30% |
Subsidizing my child(ren)'s lives |
21% |
33% |
43% |
33% |
43% |
35% |
30% |
I feel happy that I am in a |
92% |
88% |
89% |
87% |
92% |
87% |
81% |
Yearly amount spent on average |
$3,901 |
$3,729 |
$5,279 |
$2,668 |
$767 |
$4,135 |
$2,334 |
About the 2019 RBC Family Finances Survey
The survey was conducted by Leger from October 26 to November 9, 2018 on behalf of RBC, through an online national survey of 1,004 Canadian parents (age 36 and older) who have millennial children (ages 18 to 35). The results are considered accurate to within ± 2.2 percentage points, 19 times out of 20.
About RBC's Retirement Advice, Investing and Saving Solutions
The new rbc.com/retirement hub covers the three stages of retirement, from saving and planning, getting close and living in retirement. The hub provides advice around financial and non-financial considerations, such as knowing when to retire, when to take CPP/QPP, and how to create a steady income in retirement. In addition, MyAdvisor is an online service unique to RBC that digitally connects clients to advisors – including Financial Planners – providing an "in real time" opportunity for the client and the advisor to view and adjust an interactive dashboard displaying the client's savings and investment goals and to establish actions to achieve those goals. RBC also offers NOMI Find & Save, which proactively analyzes a client's spending behaviours to find extra money that won't be missed, and automatically sets it aside as savings. Since launching in October 2017, NOMI Find & Save has helped Canadians save more than $60 million – with active NOMI Find & Save clients saving an average of $150 per month. In addition, NOMI Find & Save is now available to joint account holders, helping even more clients automatically accelerate their savings.
SOURCE RBC Royal Bank
Media contact: Kathy Bevan, RBC Communications, 647-618-2287, [email protected]
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