Press Coverage

Financial Post
July 06, 2009

Far from inheriting, boomers willing to provide financial help to aging parents

by Jonathan Chevreau

Baby boomers have long had a dubious reputation for spawning the "Me" Generation but a survey from Bayshore Home Health finds many boomers more willing to give of their time and money than their aging parents might expect. Despite years of hoopla over the supposed "trillion-dollar-transfer of wealth" from the parents of the boomers to their offspring, a survey from Bayshore Home Health finds many boomers prepared to pitch in financially to help their aging parents.

The second annual Living for Today - Ready for Tomorrow survey included older Canadians aged 65 to 85 as well as those aged 40 to 64 with at least one parent living. It found long-standing family dynamics are shifting in many ways.

The study results reflect the day-to-day concerns faced by families in challenging economic times, says Holly Quinn, spokesperson for Bayshore Home Health [pictured below],  "In the past many people expected to inherit from their parents. Today, the reverse is true --many children of older Canadians are anticipating they'll need to help their parents out financially."

One-quarter of adult children think their parents will ask them for financial help to get through the recession, even though only 5% of parents say they will ask. Two thirds (67%) of adult children are more willing to give financial help than their parents think they would be; and 30% of adult children expect the  economic crisis to affect their parents' ability to pay for medications and other expenses.

One in seven fear retired parents will be short of money

Almost one in seven adult children are not confident their parents have enough money in their retirement, and only half were very confident their finances were solid. However, 25% don't know their parents' annual income. Adult children over-estimate the impact the recent economic crisis has had on their parent's ability to pay for medication and other expenses. Just 17% of seniors say the economy has impacted their ability to pay versus 30% of adult children who believe it has.

Apart from financial assistance, adult children are also assisting their parents in grocery shopping, providing companionship and travelling to appointments with them, Quinn says.  While 73% of the aging parents felt they didn't need any help around the home, only 43% of their adult children agreed.

Most boomers would offer care to avoid moving parents to nursing homes

75% of adult children say they're willing to care for their parents (versus 51% of older people who agreed) to help them avoid moving into a nursing home or extended care facility.

"It's not surprising that the current economy is impacting family relationships,"  Quinn said,  "Financial concerns are leading in turn to concerns about health care and independent living in general." 88% of aging parents don't want to be a burden to their families, but 65% of the adult children would accommodate them moving in and 32% think their parent is embarrassed to ask for help.

The study reveals most people aged 65 to 85 will do whatever it takes to avoid moving into a nursing home or extended care facility. Only 46% have researched ways to live independently at home and just four in ten have made modifications to their homes to ensure safe environments. Only 3% say they are on a waiting list for an assisted living facility.

"Although the study revealed a strong desire for independence, it also showed that many seniors will not admit to needing any assistance," Quinn said.