Quebec parents report they’re happy to provide support, but is retirement in jeopardy?

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.”

Version:1.0 StartHTML:000000303 EndHTML:000023106 StartFragment:000010007 EndFragment:000023029 StartSelection:000010007 EndSelection:000022985 SourceURL:https://www.newswire.ca/news-releases/parental-paradox-trying-to-save-for-retirement-while-supporting-adult-children-rbc-poll-830255413.html Parental Paradox: Trying to save for retirement while supporting adult children – RBC Poll

National and Regional Findings

RBC Family Finances Survey:Parents of children aged 18-35QCNAT’LBCABMB/SKONAC
Yearly amount spent on average
by parents who are spending
money to support their adult
children (aged 18 – 35)
I have helped my child(ren) pay,
in part or in full, for certain things
since they’ve turned 18…
•…for their education71%69%60%65%66%72%63%
•…for living expenses59%65%73%66%63%66%74%
•… for cell phone bills46%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.
My child(ren) are trying to
become financially independent.
My child(ren) are struggling to
become financially independent.
I feel that it is very difficult for
young adults starting out today to
make ends meet.
I am concerned that supporting
my adult child(ren) will impact my
retirement savings.
Subsidizing my child(ren)’s lives
has/will cause me to prolong my
plans to retire.
I feel happy that I am in a
position to support my adult
Yearly amount spent on average
by parents who are spending
money to support their adult
children (aged 30 – 35)