New BMO data shows intergenerational help is eroding retirement security
Canadians who are already worried about retiring comfortably are now staring down a new tension: helping adult children with housing and day‑to‑day costs while trying to secure their own futures, according to BMO’s latest Retirement Survey.
Roughly two thirds of respondents said saving and investing for retirement have been harder for them than it was for their parents, with concern most pronounced among millennials, followed by Gen X, Gen Z and boomers. At the same time, 77% believed retirement would be tougher still for the generation after them.
“With uncertainty around the cost of living and what retirement will look like in the future, it's natural for Canadians to feel anxious about whether they're saving enough,” said Paul Lalonde, head of wealth planning at BMO Private Wealth Canada.
“A trusted advisor can help cut through the complexity, create a clear financial plan, and help give people the confidence that they're taking the right steps – no matter where they're starting from.”
Nearly half of those surveyed plan to help their adult children financially, even though most acknowledged that support would negatively affect their own retirement plans. That instinct lines up with broader trends: many parents and grandparents expect to provide gifts or ongoing assistance for housing and other expenses, even as they worried about their own ability to save.
“As many young Canadians navigate the current economic environment, parents and grandparents understandably want to help alleviate some of the financial pressures – from rising housing costs to education and childcare,” Anthony (Tony) Tintinalli, Head, Specialized Sales at BMO, previously said.
“We are seeing more families thinking beyond their own retirement and planning for how wealth will be passed to the next generation,” said Lydia Potocnik, vice‑president and regional director, estate and trust services at BMO Private Wealth.
“Intergenerational wealth transfers have become a critical part of financial planning. A well‑structured holistic strategy often includes estate planning, which can help parents support their children without compromising their own retirement security.”
There has been a growing role of family in down payment assistance and the challenges facing first-time homebuyers in a high-cost environment. A Royal LePage survey also found that 41% of first-time homebuyers expect financial help from family or friends, while 51% do not.
“This transfer of wealth has become increasingly common, as parents look to give their children the same opportunity for stability and long-term financial growth that they themselves experienced through home ownership,” said Phil Soper, president and CEO of Royal LePage.
For mortgage professionals, the findings sit alongside evidence that more Canadians are carrying mortgage debt into retirement and considering selling or remortgaging their homes to fund their later years – developments Statistics Canada and industry surveys warned could delay retirement or heighten financial stress if not carefully managed.
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