Still cutting checks for your 30-something boy? You are not alone, suggests the RBC poll


Canadian parents are still financially supporting their children through adulthood, sometimes until the age of 30, new research sponsored by the Royal Bank of Canada has discovered.

The bank commissioned opinion research firm Leger to survey 1,004 Canadian parents in October and November and asked them about the impact their adult children were having on their own retirement plans. As the survey was conducted online, it can not be considered truly random, but for comparison purposes only, a random sample of the same size would produce a margin of error of plus or minus 2.2%, 19 times out of 20.

The survey found that, on average, 96 percent of parents who have adult children were still financially supporting after age 18. On average, respondents said they were spending an average of $ 5,623 a year to support their adult children, helping them to pay for things like their education and living expenses like rent. More than half of them said their financial involvement is going to end up paying for things like monthly cellphone bills.

Parents are "very aware of the challenges their children are facing and are looking to support them as they enter the job market," said Rick Lowes, RBC's vice president of retirement strategy, in an interview. "But this living gift will potentially be impacting your savings and retirement plans."

Although the vast majority – 88% nationally – are happy to help and happy to be in a position to power, Lowes says aid is clearly having an impact on their own financial lives.

One-third of parents said helping their adult children is delaying their retirement plans, but the ratio jumps to 43% among British Colombians, while it drops to 21% among Quebecers.

"For some people this will be a burden easier than other people," Lowes said.

And the donation of parents also does not stop in the typical post-secondary years. Nearly half – 48 percent – of the respondents said they were still giving money to their children between the ages of 30 and 35. Up to $ 3,729, on average, across the country. But, as in most things, the number is higher in some places than in others.

The level of support was highest in the two most expensive real estate markets in Canada, British Columbia and Ontario.

"It is probably not reasonable to conclude that the rapid rise in house prices puts a little more pressure on children today," Lowes said.


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