The poll, commissioned by CIBC and conducted by Leger, shows that 60 percent of Canadian parents with children under 25 have less savings than they planned for their retirement because they’ve used their savings to finance their child’s education.
Over 30 percent of parents also say they have taken on more debt to help fund their child’s education or other needs.
The additional debt and lack of adequate savings have meant that 36 percent of parents can’t retire at the age they had planned. Within this group, the poll says, 19 percent are planning to delay retirement by five or more years, and 16 percent are planning to delay retirement by one to four years.
“The expenses associated with a child’s education often come when parents are in their 40s and 50s and are looking to accelerate retirement savings,” Christina Kramer, an executive vice president with the CIBC, said in a statement.
“This means some parents will need more working years to close the gap created by the costs of their child’s education.”
Kramer said parents need to have a plan and start early to manage the costs of their child’s education.
“Saving for your child’s education is just like saving for your retirement—the sooner you start, the more time you’ll have, and the more manageable your monthly contribution will be,” Kramer said.
Across Canada, the highest percentage of parents delaying retirement is in Ontario, with 40 percent, and the lowest is in Atlantic Canada, with 24 percent.
The survey was conducted with 1,000 Canadians between June 9 and 12.