The "Bank of Mom and Dad" is thriving in Canada.
A new poll conducted by the Royal Bank of Canada (RBC), the country’s largest financial institution, has found that 96% of parents who have adult children over the age of 18 are still financially supporting them – some well into their 30s. And parents are continuing to pay for everything from rent and mortgages to cell phone and cable TV bills.
RBC commissioned polling firm Leger to survey 1,004 Canadian parents last October and November and asked them about the impact that their adult children are having on their retirement plans. The results found that parents in Canada are spending an average of $5,623 a year supporting their adult children financially.
And a third of parents said that continuing to help their adult kids is delaying their own retirement. That ratio jumps to 43% among British Columbians and drops to 21% among Quebecers.
And the parental giving doesn't stop in the typical university/college years. Almost half — 48%— of people polled said they were still giving money to their kids between the ages of 30 and 35. As much as $3,729, on average, across the country. The level of support is highest in Canada's two most expensive housing markets – Toronto and Vancouver.
