Fifty one per cent of Canadians with adult children say those children are still financially dependent on them while 45 per cent say their adult offspring are causing a financial strain, says a new survey called Children and Financial Dependence conducted on behalf of the Financial Planning Standards Council (FPSC).
According to the results, assisting their "big kids" with post-secondary costs will postpone the retirement of 45 percent of respondents and prevent 46 percent from paying off their debt.
The survey showed that 65 per cent of parents with children over 18 either will or already have assisted their kids with their first home purchase. However, only 43 per cent of parents with children under the age of 18 intend to do so.
The survey also found that men (44 per cent) are significantly more likely than women (32 per cent) to assist their children with their first home purchase. That gender divide also extends to delaying retirement—with 22 per cent of men versus 12 per cent of women willing to postpone retirement to assist their kids with their first home purchase.
Quebec parents, however, are significantly less likely (12 per cent) than the rest of the country (21 per cent) to help their children purchase their first home if it prevents them from paying off their own debt.
To Explore your Possibilities to develop a plan that works for you and your adult children, talk to a Four Points Financial Solutions advisor by calling 1-866-235-0004 today.