(February 21 – 10:10 ET) – More than one quarter of young Canadians believe they will be required to provide financial support to their parents in the future.

That’s one of the findings of the 10th Annual Royal Bank Financial Group RRSP Poll. The poll focuses on issues of inheritance and retirement.

The annual survey found that 27% of Canadians aged 18-29 view parental support as a long-term financial factor, versus 24% for those in their early 30s. Overall, the poll found that 21% of all age groups views parental support as a future financial responsibility.

“Our poll suggests that the next generation feels that beyond preparing financially for such major life events as buying a home, starting a family and retirement, they may also be required to support aging parents,” said Dale Mitchell, Royal Bank’s manager of registered products. “The younger the respondent, the more likely he or she feels this sense of responsibility, whether that means paying for homecare, healthcare costs or other parental needs.”

The survey found that nearly 60% of respondents between 18-34 are using a financial advisor to achieve their financial objectives. “We asked Canadians what they expect to be their primary source of retirement income and the answer we heard was different than what you might have expected a generation ago,” said Mitchell.

“While a home is a good investment, few expect to sell the family home and rely solely on the equity they have built up to finance their retirement. Instead, they are relying on basic investment practices to provide for better financial security down the road.”

About 65% of respondents expect to live off the income from their investments (35%) or from an employee pension (30%). While 73% of respondents with a parent still living expect to inherit their parent’s estate, only 7% described this inheritance as very important to their financial planning.

The survey was conducted by Ipsos-Reid between November 9 and 19. Telephone interviews were conducted with 1,202 Canadians 18 years of age or over. The survey is considered accurate within 2.8%, 19 times out of 20.
-IE Staff