It’s one of the ways that Zoomers differ from the previous generation. According to the Royal bank, a majority expect to give financial help to their children while they are still alive. The bank polled boomers with household income of more than $100,000, and it wasn’t just a question of helping their kids out of a crunch. Leanne Davies, a retirement specialist at the bank, says boomers want to contribute towards that first home or car or a grandchild’s education.
“What we really got a sense of is that they wanted to watch their children enjoy life, and they really wanted as part of their retirement a chance to sit back and have that enjoyment of watching their own children and their own grandchildren have it a little bit easier than they had it.”
She says anyone who’s thinking about becoming the Bank of Ma and Pa should crunch the numbers carefully and take into account that we’re living longer than ever.
Gifting your money early might jeopardize your future plans, and so you really want to sit down with a planner and think long term of what your goals are. Think of the health concerns you might have in the future, or other people that are dependent upon you, the health concerns that they might have, what type of living choices you want to make, and plan all that out before you gift the money to your children.”