Our neighbors to the north are having family trouble, and the same could soon be said of one of your boomer clients. The Toronto Star reports on a new study that finds Canadian baby boomers are paying a steep price for parenthood as many cope with reduced retirement savings and increased debt to provide financial help to their adult children.
Investors Group's Boomers on Call survey found that six in 10 parents of that rapidly graying generation are doling out an average of $3,675 per year to their adult kids. And about a quarter of them are finding it a real hassle to do so.
Not only are their financial responsibilities lasting longer than expected, boomers are struggling with their own "cash crunch" as they prepare for their golden years, Jane Olshewski, manager of financial life planning for Investors Group, told the paper.
The survey also found that a small subset of this group, about one in 10, are finding themselves stuck in a "boomer sandwich" as they support both children and aging parents. Some are spending an average of $6,000 per year on their parents.
