New Canadians feeling sandwiched

The financial impact on clients of supporting both their children and their parents can be dramatic: imagine the costs of university and long-term care colliding. A new survey by Desjardins Financial Security finds the so-called “sandwich generation” is especially prevalent among new Canadians.

The survey found that one in five of respondents born outside of Canada fell into the Sandwich Generation category, compared to 7% of the overall survey sample.

“Most Canadians are finding it difficult to make ends meet, but these results are showing us that immigrants are feeling particularly overwhelmed because they’re balancing more than the average Canadian,” said Reh Bhanji, regional sales manager of the Wealth Management and Life and Health Insurance division at Desjardins Group.

Among the overall population, 61% of Canadians who provide care for their parents reported feeling the financial impact—among new Canadians, that number was 71%.

“The ‘sandwich generation’ may be a new phenomenon in North America, but it’s not for many new Canadians — it’s life. They’re juggling the challenge of establishing roots in a new country, raising a family and caring for elderly parents, all within a very tight budget.”

Because caring for an extended family is often culturally ingrained, recent arrivals are more likely to have a plan. Among those who arrived in Canada in the past five years, 40% said they had a plan for providing care for their parents, compared to 18.9% overall.

“However, there are many who are still struggling financially,” said Bhanji. “Working with a financial advisor can help rebalance the plan to ensure that your family’s financial security is assured while providing your parents with the care that they need.”

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.