Canadian seniors are feeling the squeeze of higher living costs and many are balancing the financial needs of their children and grandchildren with their own shrinking retirement security, a new report shows.
The 2025 Aging and Affordability Insights Benchmark Report by Bloom Finance, released October 1st, compares survey data from last year and highlights how intergenerational financial support and inflation are shaping retirement planning.
Family support at a cost
The report found one in three parents and grandparents (31%) continue to financially support their children or grandchildren, unchanged from 2024. But for those who give, the costs are hitting harder.
This year, 76% of grandparents said providing financial support affects their retirement savings. That is an increase of 11% from last year when 65% said the same. Three in 10 said the impact is significant.
Among those who offer support, 67% help cover everyday living expenses, up from 55% in 2024. Nearly three in 10 (28%) contribute to rent or mortgage payments, slightly higher than the year before. And while 27% still fund extracurricular activities or childcare, that figure is down from 33%.
“We know Canadians are feeling the squeeze of rising costs, and this year’s survey shows that strain more clearly than ever,” said Ben McCabe, founder and CEO of Bloom Finance, in a statement.
“More Canadians are supporting their families with everyday expenses, and more are telling us it’s cutting into their retirement savings."
Adjusting retirement plans
Rising costs are forcing seniors to rethink how they will fund retirement. According to the survey, 61% of grandparents plan to adjust their lifestyle or spending habits to address potential shortfalls in savings. Nearly a third (29%) said they plan to reduce financial support to family members, while 19% remain unsure of how they will manage.
Some are looking for additional income. Thirty-six percent said they are likely to take on part-time work during retirement, and 21% are considering downsizing or alternative living situations to access home equity earlier than anticipated.
Over half of respondents (55%) expressed concern their retirement savings won’t be enough to maintain their lifestyle as costs continue to outpace income and savings.
A more cautious holiday season
The pressure is also showing up in how seniors are planning for the holiday season.
More than half (58%) said they will spend under $1,000 this holiday season, up 10 points from 2024. Nearly two-thirds (63%) said rising costs will make holiday spending harder, with one in four saying it will be much more difficult.
What seniors can do
Financial experts often recommend seniors balance helping loved ones with protecting their own long-term stability. That may mean setting clear limits on financial support, budgeting for both everyday expenses and retirement needs, or exploring ways to tap into assets like home equity.
For example, Bloom Finance offers reverse mortgage products for Canadians over 55. The company says accessing home equity can help retirees cover living costs, reduce stress and continue supporting family without drawing down savings too quickly.
The report also notes that careful planning and open family discussions can ease financial pressure across generations. Seniors who outline clear expectations about how much support they can provide may be better positioned to maintain their independence while still helping children and grandchildren navigate the current economic climate.
Methodology The findings are based on a survey conducted by Bloom Finance from Sept. 17 to 22, 2025, among 510 Canadians aged 55 and over who are members of the Angus Reid Forum. The survey was carried out in English and French. For comparison, a probability sample of this size would carry a margin of error of plus or minus 4.4 percentage points, 19 times out of 20.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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