Survey finds most investors rely on advisors as family support erodes their own nest eggs
Canadians expect to retire later and with less security than their parents, yet many still plan to divert savings to help their children, even when they know it will hurt their own retirement plans.
Canadians increasingly believe the retirement system is moving against them.
According to the latest BMO Retirement Survey, roughly two thirds (67 percent) say it will be more difficult for them to save and invest for retirement than it was for their parents, with Millennials (73 percent) the most pessimistic, followed by Gen X (67 percent), Gen Z (61 percent) and Boomers (60 percent).
Concern runs even deeper when Canadians look ahead to the next generation. The survey finds 77 percent believe retirement will be harder for the generation after them.
Boomers (82 percent) express the greatest worry about future retirement prospects, followed by Millennials (78 percent), Gen X (75 percent) and Gen Z (67 percent).
At the same time, many households intend to keep supporting adult children financially.
Among the 49 percent of respondents who plan to help their adult children, 83 percent say they understand this support will negatively affect their own retirement plans.
This impulse is strongest among younger cohorts: 68 percent of Gen Z say they plan to provide financial support to their children, followed by 58 percent of Millennials, 42 percent of Gen X and 38 percent of Boomers.
Advisors and planners sit squarely in the middle of these competing pressures.
Paul Lalonde, head of Wealth Planning at BMO Private Wealth Canada, said that with uncertainty around the cost of living and future retirement, it is natural for Canadians to feel anxious about whether they are saving enough.
He added that a trusted advisor can “cut through the complexity, create a clear financial plan, and help give people the confidence that they’re taking the right steps – no matter where they’re starting from.”
The survey indicates that investors generally value that relationship.
Nearly nine-in-ten (89 percent) say their advisor helps them meet their financial goals, with 44 percent strongly agreeing.
Intergenerational wealth planning is becoming a core expectation rather than an add-on.
Lydia Potocnik, vice-president and regional director, Estate and Trust Services at BMO Private Wealth, said more families are “thinking beyond their own retirement and planning for how wealth will be passed to the next generation.”
She added that intergenerational wealth transfers are now “a critical part of financial planning,” and that a well-structured holistic strategy often includes estate planning to help parents support their children without compromising their own retirement security.
