TORONTO--(BUSINESS WIRE)--As young Canadians continue to grapple with rising living costs, the 2024 Financial Support Sentiment survey issued by Bloom Finance in Partnership with Angus Reid, found that intergenerational financial support has become a common practice. The survey sheds light on growing financial pressures collectively faced by Canadian families, revealing that one in three Canadian grandparents are financially supporting their children or grandchildren. This further illustrates the delicate balancing act that Canadian grandparents are facing amid the cost of living crisis, with more than half (65%) of survey respondents saying that financially supporting their children and grandchildren has affected their retirement savings.
The survey released today finds that:
FINANCIAL SUPPORT TRENDS:
- One-in-three Canadian grandparents support their children or grandchildren financially
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43% of those who do support their adult children and 37% of those who support their grandchildren feel obligated to do so, with the main reasons for feeling obligated due to:
- They are in need of financial support (68%)
- Rising living costs (44%)
- The culture of paying it forward: their parents/grandparents helped them (24%)
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53% say the amount or frequency of financial support they provide to children and grandchildren has increased over the last two years
- Of those who are supporting their children, 42% are providing more than $5,000 per year
- Of those who are supporting their grandchildren, 22% are providing more than $5,000 per year
- 55% currently support their children/grandchildren with everyday living expenses including groceries, gas, clothing, and cell phone bills, followed by extracurricular activities or child care (33%), and rent or mortgage payments (26%)
IMPACT ON RETIREMENT PLANS:
- 65% of Canadian grandparents say their financial support obligations have affected their retirement savings, with 66% of Canadian grandparents indicating that the increased cost of living has altered their retirement plans
- To address any shortfall in retirement savings due to financial support, 67% of Canadian grandparents plan to adjust their own lifestyle or spending habits, while only 18% plan to reduce the financial support they provide to their children or grandchildren
- Of those who have an upcoming mortgage renewal, nearly one quarter (22%) say it will impact their financial stability
“Intergenerational financial support has become ingrained in our cultural fabric, and while it’s admirable, the rising costs of living are jeopardizing Canadian seniors’ financial outlook. Canadians shouldn’t have to choose between their loved ones and themselves,” said Ben McCabe, Founder and CEO of Bloom. “Solutions like ours empower Canadian seniors to access their home equity, allowing them to assist family members when needed while maintaining their own financial independence.”
As many Canadian seniors are bearing the burden of choosing between financially supporting their loved ones and investing in their retirement, Bloom Finance is bringing innovative and accessible financial alternatives to help Canadian grandparents find financial relief through the wealth accumulated in their homes.
For more on Bloom Finance, visit bloomfin.ca.
About Bloom Finance Ltd.
Bloom is a leading Canadian fintech company dedicated to assisting homeowners aged 55 and above in accessing the wealth accumulated in their homes to enjoy more comfortable retirements. Through the integration of cutting-edge technology and innovative product delivery, the company is reshaping home equity access to be adaptable, enduring, and user-friendly. Bloom’s overarching mission is to alleviate financial stress among retired homeowners, enabling them to relish the golden years of their lives. Licensed in ON:13338, BC:MBX600455, and AB. Discover more at www.bloomfin.ca.
Methodology
These are the findings of a study conducted by Bloom Finance from September 18 to 22, 2024 among a sample of 503 online Canadians aged 55 and over who are members of the Angus Reid Forum. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/- 4.4 percentage points, 19 times out of 20.
