Alain Guillot

Life, Leadership, and Money Matters

Would you postpone retirement to help out your children

Alain Pubic speaking

Our economy is changing and the kids need help

Our society is changing fast. Nowadays, more and more people are working under short-term contracts, or they are freelancers (like myself), and although there are more opportunities than ever before, there is also a big probability of falling through the cracks, there is the probability of feeling lost and without hope. For many, the solution of last resort is the bank of Pop and Mom.

Would you postpone retirement to help your kids?

My Family’s story

My mother did.

When I was in my early 20s, I was in a difficult financial situation and my mother, who didn’t have a lot of money at that time, helped me out. I know that she has also helped my brother when he too was in a difficult situation. Mom, I am forever grateful. 🙂

My daughter

I have a daughter, but I never had to consider whether I could help her or not. Ever since my daughter was a teenager, she has been out earning me. When she was a babysitter, she was earning $20 cash while I was also earning $20 declared with all kind of deductions. When she got a job as a waitress, she worked at a high-end restaurant, in one night she was earning as much as I earned in a month.

My friends

I know of a couple who drew a large chunk of their retirement money in order to invest in their son’s start-up business. Unfortunately, the business didn’t work out and the couple lost their money. For them, it’s not a hypothetical question, they risked that money because they love and support their son. When I asked them if they would do it again they said, “absolutely!”

I know that maternal or paternal love is so strong that most parents would not hesitate to help their children in case of need.

Where do we draw the line

What I see as a problem is when helping out becomes a habit, when the child is ALWAYS in need, when the parents become enablers of the child’s lack of ambition or resourcefulness. When that happens, I believe the parent should find a way to cut the cord.

I believe that the great majority of Canadians would gladly delay their retirement for one or two years, to help out their kids. I believe I would too.

But how far can a parent go? How about if that parent is not in a great financial situation. Obviously, there has to be a line drawn somewhere. Should parents get in debt, or in deeper debt to help a child?

In this case, my strong opinion is “No.” If the parents are not in a position to help themselves, they are certainly not in a position to help out others.

What the readers say:
Janaka Abeyaratna: Absolutely not. If you are not held accountable you will never learn.
Ivan Murcia from Trucavelo: YES in my opinion! 🙂 …if you are in a good financial situation. I am 42, by the time my children become adults (around 18 years from now) I will be already retired. My parents gave me education, travel, help me to learn english and I am the person I am, in part, thanks to them. I think, if we have the wealth, we should help family, with some limits of course.
My response to Ivan: After a few years, I have changed my mind. Now, I totally agree with you.
If you have a limited mindset (this or that, but not both) you would not have enough in retirement, even if you didn’t help your kids. If you have a growth mindset, you can help your kids and have a great retirement.

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