Many Canadians expect that providing financial support to their elderly parents will have a major impact on their finances, a 2019 survey commissioned by FP Canada reveals.
Of more than 1,500 Canadians surveyed, 14% among those with a living parent said they expect that supporting their parents financially will cause them to postpone their retirement and 12% said they expect that it will prevent them from paying off debt. Younger Canadians between the ages of 18-34 are particularly worried, with one-in-five (18%) expecting to postpone their retirement as a result of financially supporting their parents.
The survey results suggest that many Canadians are in denial about the financial support their parents will need as they grow older.
You need to ask yourself if you are prepared to give up a lot of your retirement savings, to financially support your parents for many years or even decades.
The survey reveals that fewer than one-in-three Canadians (28%) are familiar with tax credits associated with dependent parents.
For example, an elderly parent using a wheelchair may qualify for home-renovation credits to make the house more accessible, or an adult child might be eligible for theCanada caregiver credit if he or she is looking after a parent with a mental or physical impairment.
