Being the caregiver to an older family member is costing Canadians anywhere from $7,000 to $10,000 a year in out-of-pocket spending and harming their own financial future, according to an Edward Jones report.

“ Caregiving often requires significant time, emotional energy and financial resources, and most caregivers are managing all three at the same time. The financial impact is real and much of it goes uncovered,” said the report released on Wednesday.

Edward Jones said a huge majority of caregivers wind up assuming the role of financial caregiver to helping to manage finances and legacy affairs, such as wills , as physical or cognitive issues impair people’s abilities.

“But financial caregiving is just as much about the caregiver’s own finances,” the report said.

Nearly half of the 2,100 Canadians surveyed who are caring for someone 65 or older or with disabilities aged 18 to 64 said they are making personal financial sacrifices to provide care.

About nine in 10 of those caring for people and their finances said they spent their $7,025 of their own per year, which rises to $10,190 when a recipient doesn’t have enough money to support themselves, with contributions going to cover household, housing , transportation and medical expenses.

Often, much of that out-of-pocket money goes unrecovered.

A majority of those caregivers are making other financial sacrifices, such as reducing or stopping savings or trimming retirement contributions .

“Some even borrow from or draw on their retirement accounts,” the report said, while about a quarter of respondents said they took on debt to help care for someone.

Others forgo income and retirement savings due to fewer career opportunities.

Aside from out-of-pocket expenses for things such as specialized medical equipment, medication, transportation and groceries, unpaid caregiving swallows up as much as 5.7 billion hours a year in total, according to a Scotia Wealth Management report last year.

“By spending this time looking after loved ones, they may miss out on opportunities that could improve their own lives,” the report said.

About half of financial caregivers are also sandwiched between caring for children and usually a parent, three-quarters are employed and the average caregiving tenure lasts seven years, Edward Jones said.

Few people are prepared for what’s entailed in financial caregiving since it often starts with an emergency, usually a health problem, but sometimes a financial one.

The reasons someone becomes financial caregiver also have less to do with being in the strongest fiscal position or being qualified and more to do with having the closest relationship with the recipient or being closest in location.

Managing another person’s finances might start off with small tasks, but they can become more complicated over time, especially if someone’s finances were poorly managed and the caregiver doesn’t have a lot of financial experience. As a result, more than a third rely on professionals for financial and legal help.

Many who look after someone said they don’t want to be a burden to their own families, despite generally agreeing that they are willing to sacrifice their own financial security to look after someone they love.

“Unfortunately, reducing their own financial security increases the likelihood that they will need support later in life,” Edward Jones said.

The Edward Jones report drew on a survey by Age Wave and the Harris Poll conducted this year.

  • Posthaste: U.S. businesses feel fresh pain from trade war with Canada, says this hot take on the economy
  • Posthaste: How did Canada dodge collateral damage in one of its worst housing corrections ever? Maybe it didn’t

Sign up here to get Posthaste delivered straight to your inbox.


Manufacturing sales in Canada climbed in August while wholesale trade dipped, but the effects from the new 50 per cent United States tariffs were not reflected in the data.

The figures, published on Thursday, showed manufacturing sales rose by 1.5 per cent to $79.9 billion in August following a 0.3 per cent dip in July.

The gains were broad-based, with 12 out of 21 subsectors reporting gains between July and August. The primary metal and chemical subsectors — which rose by 14 per cent and 4.4 per cent, respectively — led the gains, which were partially offset by a 2.6 per cent decline in transportation equipment sales. — Paula Tran, Financial Post

Read the full story here.

  • Today’s Data: Canada existing home sales, housing starts and international securities transactions, New York Fed services business activity, U.S. import and export price indexes
  • Earnings: A&W Food Services of Canada, Regions Financial Corp., The Travelers Cos. Inc., Truist Financial Corp., Citizens Financial Group Inc., Ladder Capital Corp., M&T Bank Corp.

  • Why is Alberta oil shedding value even as global crude markets soar?
  • Here’s how Canada’s data centre boom could hurt — or help — your wallet
  • Canadian businesses need to adopt AI more widely, but risks remain, Bank of Canada governor says

Max is a widower living in Ontario. His father in law died last year leaving a will that said any inheritance was to be divided equally between his living children and Max’s children. Money for them will go into a trust to be paid out in gradual instalments and looked after by an executor. Max wants to know if he has any rights to the inheritance that would have gone to his wife had she been alive? Or, did he have to be specifically mentioned in the will to receive anything? In either case, he wonders if it is worth it to sue for a share of the inheritance before it is distributed later this year? Keep reading FP Answers here to find out if Max has any options.

The FP Atlantic Economic Report takes you behind the scenes of the business world in Atlantic Canada. We’ll bring you insights from CEOs, government leaders, investors and economists on what’s making the regional economy tick and where it’s heading next. Sign up 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 Gigi Suhanic with additional reporting from Financial Post staff and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com .

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here