A new survey highlights how Canadian grandparents are helping their younger family members survive financially despite the country’s high cost of living.
The 2024 Financial Support Sentiment survey by Bloom Finance notes that grandparents’ financial support goes well beyond the $50 they used to slip into birthday and holiday cards.
The survey was conducted online among a sample of 503 Canadians 55 and over who were members of the Angus Reid Forum. It found that one in three grandparents in Canada supports their children or grandchildren with money.
More than two-thirds (43%) of grandparents who support their adult children and 37% of those who support their grandchildren feel obligated to do so.
The majority of respondents (68%) said they’re sending their kids and grandkids money because they are in need of help, while 44% cited the rising cost of living.
Nearly one in four (24%) said they felt the need to pay it forward because they received help from their own parents and grandparents.
How much are grandparents forking over?
Over half (53%) of grandparents surveyed said the amount of money and frequency they provide their family members has increased over the past two years.
Of those who are supporting their children, 42% are providing more than $5,000 per year and 22% helping their grandkids say they’re sending over that amount to them as well.
That money isn’t being used for long-term purchases towards a home or a vehicle, either.
Over half (55%) of grandparents said financial assistance helps their children and grandchildren pay everyday expenses like groceries, gas, and cell phone bills.
Other reasons for their help include extracurricular activities or childcare (33%) and rent or mortgage payments (26%).
Retirement plans are being affected
Ben McCabe, founder and CEO of Bloom, notes that while intergenerational support is engrained into our culture and is seen as “admirable,” it also has a grim impact on grandparents’ financial futures.
A startling 65% of Canadian grandparents said their financial support obligations have impacted their retirement plans.
Nearly the same number of respondents (66%) said the cost of living has changed their plans of when they can stop working.
Although helping out with their kids’ and grandkids’ expenses is draining their bank accounts, only 18% of grandparents said they would reduce their support, whereas the majority (67%) said they’d adjust their spending habits to save.
Bloom Finance’s survey results echo a report released by the Royal Bank of Canada earlier this year.
In the bank’s 2024 RBC Family Finances Poll — Grandparents Edition, over 21% of grandparents surveyed said they were supporting at least one adult child at the time, and 30% had gifted money to their grandchildren.
Grandparents said they felt pressure to provide this financial support, with seven in 10 (70%) reporting that their adult children expected them to cover necessary costs like food and clothing. A majority (54%) were giving this money at least monthly.
Multigenerational support also impacts housing
Intergenerational help is not just monetary; it’s also changing the way Canadians choose to live.
According to a previous report from Equifax Canada, the number of Canadians opting for multigenerational living arrangements is also rising.
It also appears that Canadians are finding more creative ways to afford homes, as many are teaming up with family members.
A 2023 Royal LePage survey on Canadian adults who co-home a home with someone other than their spouse found that 76% of respondents said they had to consider the option due to “lack of housing affordability.”
Are you a Canadian grandparent feeling the financial strain of Canada’s high cost of living? Email us at [email protected], and we may contact you further about a potential story.
With files from Isabelle Docto