The rising cost of living is taking its toll on all Canadians, including

baby boomers

who are financially supporting their adult children.

Nearly a third of older parents say they are propping up their children or grandchildren financially, with 76 per cent indicating such support is affecting their retirement savings, up 11 per cent from a year ago, according to a new survey by Bloom Finance Co. Ltd.

Among those assisting their children or grandchildren, 67 per cent are helping to cover everyday living expenses, up 12 per cent from 2024, with 28 per cent helping with rent and 27 per cent helping cover extracurricular activities or child-care costs.

“We know Canadians are feeling the squeeze of rising costs, and this year’s survey shows that strain more clearly than ever,” Ben McCabe, chief executive of Bloom Finance, said in a release. “More Canadians are supporting their families with everyday expenses, and more are telling us it’s cutting into their retirement savings.”

The data echoes a

similar report

by Fidelity Investments Canada in April that said 59 per cent of retirees are financially helping their non-adult children.

The amount of support can vary, but the Ontario Securities Commission in 2024 said 39 per cent of older Canadians had gifted less than $10,000 to their adult children, while 30 per cent had gifted between $10,000 and $50,000. At the other end of the spectrum, four per cent had gifted more than $250,000.

The financial support younger Canadians need is beginning to weigh on the older generations. The Bloom Finance survey said 55 per cent of seniors worry they won’t have enough savings to maintain their lifestyle, while 61 per cent are adjusting how they live to address retirement shortfalls.

Among the lifestyle changes, 36 per cent are considering a part-time job, while 21 per cent are looking at downsizing or alternative living situations.

Fidelity Investments recommends Canadians work with an expert to parse out retirement plans that take supporting loved ones into account.

“Achieving your retirement dreams is possible with a strong plan in place,” Peter Bowen, vice-president of tax and retirement research at Fidelity, said in the report.

“Despite uncertain economic times, working with a financial advisor, developing a written financial plan, sticking to that plan, and especially staying invested can help Canadians live the retirement they envision.”

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Wednesday marked the first day of the U.S. government shutdown and it’s already being felt in the economy.

The U.S. dollar fell to its lowest point in a week, marking the fourth straight day of declines.

The Bloomberg Dollar Spot Index fell 0.2 per cent on the news, while the Group-of-10 reached a two-week high against the greenback.

The U.S. dollar may decline even further in the near future, as a prolonged shutdown is expected to put further pressure on the currency.

Read more.

  • 1:25 p.m.: Bank of Canada deputy governor Rhys R. Mendes speaks in London, Ont.
  • Today’s Data: U.S. jobless claims and factory orders will not be released today because of the U.S. government shutdown

 

  • Imperial Oil to sell headquarters in Calgary — the city with Canada’s highest office vacancy rate
  • ‘Intelligent, thoughtful and principled’: Nigel Wright remembered on Bay Street as savvy dealmaker with a generous spirit
  • For those who left the city, return to the office presents a costly housing dilemma
  • How Nvidia’s Jensen Huang became AI’s global salesman

Life is unpredictable and so are savings, but there some key measures to save effectively no matter what life throws at you. For one, building good habits early can set a solid foundation, while finding the right partner and managing support for loved ones are all important factors that should be considered when trying to save.

Read more here.

Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).

McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s

Financial Post column

can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his

mortgage rate page

for Canada’s lowest national mortgage rates, updated daily.

Financial Post on YouTube

Visit the Financial Post’s

YouTube channel

for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.

Today’s Posthaste was written by Ben Cousins, with additional reporting from Financial Post staff, Canadian Press and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at 

posthaste@postmedia.com

.

  • More young Canadians investing based on vibes over data
  • Canadians to pile on billions in debt this holiday season

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