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
by parents who are spending
money to support their adult
children (aged 18 – 35)
|
$3,986
|
$5,623
|
$6,818
|
$4,977
|
$4,806
|
$6,694
|
$3,941
|
I have
helped my child(ren) pay,
in part or in full, for certain things
since they've turned 18…
|
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)
pay, in part or in full, for certain
things since they've turned 18.
|
68%
|
76%
|
81%
|
77%
|
68%
|
79%
|
81%
|
My child(ren) are
trying to
become financially independent.
|
80%
|
85%
|
80%
|
90%
|
90%
|
88%
|
87%
|
My child(ren) are
struggling to
become financially independent.
|
33%
|
53%
|
62%
|
59%
|
55%
|
59%
|
57%
|
I feel that it is
very difficult for
young adults starting out today to
make ends meet.
|
74%
|
86%
|
94%
|
87%
|
88%
|
88%
|
90%
|
I am concerned that
supporting
my adult child(ren) will impact my
retirement savings.
|
22%
|
36%
|
44%
|
37%
|
47%
|
41%
|
30%
|
Subsidizing my
child(ren)'s lives
has/will cause me to prolong my
plans to retire.
|
21%
|
33%
|
43%
|
33%
|
43%
|
35%
|
30%
|
I feel happy that I
am in a
position to support my adult
child(ren).
|
92%
|
88%
|
89%
|
87%
|
92%
|
87%
|
81%
|
Yearly amount spent
on average
by parents who are spending
money to support their adult
children (aged 30 – 35)
|
$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