Many Canadian Caregivers Putting Their Own Financial Security at Risk to Care for Loved Ones: Study

Nearly half of Canadians who provide financial care to older loved ones say they make personal financial sacrifices to do so, according to a study by Edward Jones.

The study, released Oct. 14, found that 46 percent of financial caregivers to adults aged 65 and older make such sacrifices. The figure rises to 57 percent among those caring for adults aged 18 to 64 with disabilities.

The Edward Jones report, titled “The Financial Impact of Caregiving,” is based on an online survey of 2,152 Canadian financial caregivers. Conducted from May 13 to June 9, the research examines the financial and emotional burdens faced by Canada’s more than 3.6 million financial caregivers.

Researchers found that 84 percent of financial caregivers are not fully reimbursed for expenses incurred while supporting their loved ones. Their average out-of-pocket spending amounts to $7,025 annually, rising to $10,190 when care recipients lack sufficient financial resources to support themselves.

The spending includes household, housing, transportation and medical expenses for care recipients. The report also estimated that financial caregivers contribute approximately $20 billion annually to support their loved ones.

The financial burden can affect caregivers’ own long-term security, it said. The report found that out of the nearly half of respondents that said they made personal financial sacrifices, 44 percent reduced or stopped saving, while 25 percent reduced their retirement contributions. Another 22 percent borrowed money, increased their debt or delayed repayments, and 21 percent stopped working entirely.

Some also made career sacrifices, with 22 percent giving up career opportunities or promotions and 21 percent stopping work entirely.

The report said these financial pressures can leave caregivers vulnerable later in life, potentially creating a cycle in which their own financial security is compromised by the cost of caring for others.

The report found that 73 percent of financial caregivers would sacrifice their own financial security to support a loved one. At the same time, 84 percent said they did not want to become a burden on their own families in the future.

The strain also extends to caregivers’ health and personal lives. Nearly half (49 percent) said caregiving had negatively affected their health, while 83 percent reported at least one significant lifestyle impact, such as reducing personal spending, spending less time with family and friends, delaying medical care or putting off major life milestones.

“Financial responsibilities often remain hidden behind the emotional and physical support that families provide every day,” Scott Sullivan, a principal and Canada business segment leader at Edward Jones, said in a statement. He said caregivers often manage bills, accounts and financial decisions for loved ones while putting their own financial well-being at risk, calling it “a profound act of care.”

What Prompts Caregiving

Becoming a financial caregiver is often driven by personal connections and proximity rather than financial position or qualifications, according to the report.

The study found that 69 percent of financial caregivers said their responsibilities began gradually, with small tasks becoming more complicated over time. These responsibilities can become particularly challenging when care recipients have poorly managed finances or caregivers lack financial experience.

For 31 percent of financial caregivers, the role reportedly began suddenly, potentially following a serious illness or another major life event. Most care recipients are parents (63 percent), but could also be grandparents, in-laws, or partners.

According to the study, 71 percent of financial caregivers entered the role with little or no planning, leaving many unprepared for the responsibilities ahead.

Despite the challenges, the report found that 69 percent of financial caregivers considered the experience more rewarding than expected. The release said that 53 percent valued knowing their loved one was well cared for and protected, while 46 percent appreciated the opportunity to give back to someone who had given so much to them.

The experience also prompted many caregivers to reconsider their own financial planning. More than three-quarters (76 percent) said caregiving had changed how they prepared for the future, including organizing financial information, updating wills and legacy plans, increasing savings and seeking professional advice.