Survey shows more seniors are dipping into retirement savings to help family with housing costs
Canadian seniors are feeling the strain of rising living costs more acutely than last year, with a growing number reporting that financial support for family members is cutting deeper into their retirement savings.
According to the 2025 Aging & Affordability Insights Benchmark Report from fintech company Bloom Finance, 76% of parents and grandparents who provide financial help to their children or grandchildren said it now affects their retirement savings. This is an 11-point jump from last year’s 65%.
The report, which compared survey data from 2024 and 2025, found that intergenerational support remains a fixture in Canadian households.
“We know Canadians are feeling the squeeze of rising costs, and this year’s survey shows that strain more clearly than ever,” said Ben McCabe, founder and CEO of Bloom Finance.
“More Canadians are supporting their families with everyday expenses, and more are telling us it’s cutting into their retirement savings.
More seniors helping with housing payments
Among those offering financial support, 28% said they help with rent or mortgage payments, up slightly from 26% last year. The majority, or 67%, are covering everyday living expenses, a notable increase from 55% in 2024.
This echoes the results of a recent BMO survey, in which 45% of Canadian parents and grandparents planned to provide financial support to their adult children or grandchildren within the next year.
A recent Royal LePage survey also found that 41% of first-time homebuyers expect financial help from family or friends.
“While support can make a meaningful difference, it is important to strike a balance between generosity and protecting your own long-term financial health,” Anthony (Tony) Tintinalli, Head, Specialized Sales at BMO, said.
Retirement security under pressure
The impact on retirement security is clear: 30% of those supporting family reported a significant hit to their savings, and 61% planned to adjust their lifestyle or spending habits to address potential shortfalls.
Only 21% were considering downsizing or alternative living situations to access home equity earlier than planned, while 36% said they were likely to take on part-time work during retirement due to inflation and living costs.
Meanwhile, Tracy Valko, founder and CVO at Valko Financial, recommended 'right-sizing.'
“They’ve got too much debt. Could they manage it? Potentially, but I think they’re exhausted from having debt and managing it every day that they have to sell – and don’t want to sell,” she told Canadian Mortgage Professional. “I call it right-sizing to what your financial position is right now instead of downsizing.
“It’s a mindset for people who are already stressed: ‘Let’s talk about right-sizing to where you’re at right now with your income. Let’s alleviate all this debt by paying it off when you sell your home and then start again with a minimum downpayment – just a smaller home.’”
The report also found that 58% of seniors planned to spend under $1,000 this holiday season, up from 48% last year, with 63% citing rising costs as a major factor.
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