More than 3.6 million Canadians provide financial support to adults aged 65 and older, with nearly three-quarters willing to sacrifice their own financial security to help a loved one, according to new research from Edward Jones Canada.
The Financial Impact of Caregiving study, conducted in partnership with Age Wave and The Harris Poll, found that 71 per cent of financial caregivers entered the role with little or no planning, while caregivers collectively contribute approximately $20 billion annually to support those in their care.
The findings highlight the financial and personal pressures associated with caregiving, including unreimbursed expenses, reduced retirement savings and changes to employment, as many Canadians balance their loved ones' needs with their own long-term financial plans.
"When it comes to caregiving, financial responsibilities often remain hidden behind the emotional and physical support that families provide every day," said Scott Sullivan, Principal, Canada Business Segment Leader, Edward Jones. "Like an iceberg, the bulk of a caregiver's demands sit beneath the surface. Millions of Canadians are quietly managing bills, accounts and financial decisions for loved ones, often for years at a time, while putting their own financial well-being at risk. That's a profound act of care, but one that shouldn't have to happen without preparation and support."
Out-of-pocket costs affect financial goals
The research found that 92 per cent of Canadian financial caregivers spend money out of pocket on behalf of the person they support, while 84 per cent are not reimbursed in full. Average annual out-of-pocket spending amounts to $7,025.
Those expenses can affect caregivers' ability to meet their own financial objectives. The study found that 44 per cent have reduced or stopped saving, while 25 per cent have cut retirement contributions. Another 23 per cent have taken on additional work or shifts, and 22 per cent have borrowed money, increased debt or delayed repayments.
Career decisions are also affected, with 22 per cent of caregivers reporting that they have given up career opportunities or promotions, while 21 per cent have stopped working entirely.
"Caregiving can reshape every aspect of a person's life, including their finances," said Tracey McLennan, Head of High Net Worth and Legacy Planning, Edward Jones Canada. "Being a caregiver myself, I know how easy it is to focus entirely on the needs of a loved one while neglecting your own needs. Whether it's drawing on savings, postponing retirement goals or putting career aspirations on hold, these decisions can compound over time and, without a plan in place, impact the caregiver's long-term financial well-being."
The consequences extend beyond household finances. Nearly half of respondents, or 49 per cent, said caregiving had negatively affected their health, while 83 per cent reported at least one significant lifestyle impact. These included reducing personal spending, spending less time with family and friends, delaying major purchases or medical care, and postponing important life milestones.
Caregivers supporting disabled adults aged 18 to 64 reported additional pressures compared with those caring for adults aged 65 and older. They spent an average of 94 hours per month providing care, compared with 89 hours among the older-adult caregiver group. They were also more likely to make direct financial contributions, at 60 per cent versus 52 per cent, and personal financial sacrifices, at 57 per cent versus 46 per cent.
The younger-adult caregiver group was also more likely to report negative health effects, with 57 per cent saying caregiving had harmed their health, compared with 49 per cent of those caring for adults aged 65 and older.
Balancing family support with future security
The research identified a tension between caregivers' willingness to help relatives and their concerns about their own future needs. While 84 per cent said they did not want to become a burden on their families later in life, 73 per cent said they would compromise their financial security to support a loved one.
Despite the financial and personal costs, respondents also identified positive aspects of caregiving. More than half, or 53 per cent, said the most rewarding part was knowing their loved one was well cared for and protected. Another 46 per cent valued the opportunity to give back to someone who had supported them.
"Caregivers step up every day to support the people they love, yet their experiences are often not fully understood or supported," said Liv Mendelsohn, Chief Executive Officer of the Canadian Centre for Caregiving Excellence. "This research paints a more complete picture of the caregiving experience, including the rewards of caring and the significant financial and personal consequences many caregivers face. Too many caregivers are navigating this role without planning or the resources they need. When we better understand the realities and financial sacrifices involved in caregiving, we can more effectively connect caregivers and the people they care for to the support they need to thrive."
The study found that financial caregiving typically lasts several years. Canadian caregivers spend an average of seven years in the role and devote approximately 89 hours per month to caregiving duties, equivalent to roughly three hours a day.
More than three-quarters of financial caregivers, or 76 per cent, are employed, including 64 per cent who work full-time. The findings also show that 54 per cent are part of the so-called sandwich generation, caring for an older adult while supporting at least one child.
Financial responsibilities can continue after a loved one dies. Among caregivers whose care recipient had died, 69 per cent remained responsible for financial and legacy matters afterward, spending an average of 9.7 months settling estates, financial accounts and personal property.
Caregiving prompts financial planning
For many respondents, the experience has prompted changes to how they prepare for their own futures. More than three-quarters, or 76 per cent, said caregiving had changed their approach to future planning, including organizing financial information, updating wills and legacy plans, increasing savings, speaking with family members and seeking professional financial guidance.
Approximately half of financial caregivers, or 51 per cent, currently work with a financial adviser. Among those who do, 43 per cent said they first sought professional advice because of their caregiving responsibilities.
"Families often spend years preparing for milestones like post-secondary education, homeownership and retirement, yet caregiving is rarely planned for in the same way," said Sullivan. "Having conversations early and working with a financial advisor can help families prepare for the demands of financial caregiving and make decisions together before they feel pressured by life circumstances."