One in three still helping children or grandchildren financially as savings erode
Canadian retirees are increasingly feeling the pinch as inflation and higher living expenses collide with ongoing financial obligations to younger family members, according to new survey data.
One third of parents and grandparents continue to give financial support to their children or grandchildren and while this number has held steady since last year, the impact on retirement readiness has grown with 76% now say that providing this assistance cuts into their retirement savings, compared with 65% in 2024.
The 2025 Aging & Affordability Insights Benchmark Report from Bloom Finance also found that two thirds of respondents said they help cover day-to-day living expenses, up from 55% last year. Roughly 28% contribute to housing costs and 27% help fund childcare or extracurriculars, down from 33%.
These pressures are shaping how seniors are approaching retirement with 30% reporting that the impact on their savings is significant.
More than half fear they will not have enough to sustain their lifestyle as expenses rise. In response, 61% expect to curb spending, nearly a third plan to reduce family support, and 36% anticipate taking part-time jobs in retirement. Only 21% are considering downsizing or drawing on home equity sooner than expected.
The upcoming holiday season may highlight these financial strains further as 58% plan to spend less than $1,000, up from 48% last year, while 63% say inflation will make gift giving harder.
“More Canadians are supporting their families with everyday expenses, and more are telling
us it’s cutting into their retirement savings,” says Ben McCabe, founder and CEO of Bloom Finance. “We see this pressure every day and our focus is on helping older Canadians use the value in their homes so they can live more comfortably.”
