Balancing retirement with caring for children and parents
Forty-one percent of retired Canadians aged 55 to 70 still have at least one living parent and are finding it increasingly difficult to balance the needs of their own families with that of their parents or in-laws.
The recent TD Waterhouse Canadians and Retirements Report found that 22 percent of retired Canadians are finically supporting their children and 14 percent are supporting their parents either financially (7 percent) or by having their parent(s) living with them (7 percent.).
“Caring for family can be a major constraint on both your time and finances. It’s important to plan ahead and consider different contingencies, including caregiving or financial support for parents and children,” said Reg Swamy, Vice President, Private Trust, TD Waterhouse, in a statement.
While most retired Canadians (77 percent) said they plan on leaving an inheritance for their children, family members or others, Swamy said the changing landscape of a family home needs to be addressed.
“Estate planning often involves more than most people consider. All assets, income and liabilities of the estate must be taken into account, including how you would like your assets to be distributed, and the tax implications of your estate. If you want to leave assets for your grandchildren, you may need to set up a trust,” he said.
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