{"id":505390,"date":"2026-02-26T13:19:07","date_gmt":"2026-02-26T13:19:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/505390\/"},"modified":"2026-02-26T13:19:07","modified_gmt":"2026-02-26T13:19:07","slug":"should-we-help-our-son-buy-a-home-even-though-were-on-the-verge-of-retirement","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/505390\/","title":{"rendered":"Should we help our son buy a home even though we\u2019re on the verge of retirement?"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Illustration by The Globe and Mail<\/p>\n

Q: We\u2019re on the verge of retirement<\/a>, but we\u2019re thinking that part of that plan will include helping our son buy a home. Should we? And what should we be thinking about as part of the process?<\/p>\n

We asked Jillian Bryan, senior investment adviser with TD Wealth, to answer this one.<\/p>\n

\u201cIn recent years, an increasing number of my clients approaching retirement have raised a similar question: whether they should help an adult child buy a home and, if so, how to do it responsibly,\u201d Ms. Bryan said. The impulse is understandable, she added. Housing<\/a> costs have climbed sharply, and many parents want to ensure their children can establish stability earlier than they themselves did. Yet the decision is rarely straightforward. It requires a clear view of one\u2019s own retirement needs, an understanding of how capital depletion can alter long-term security, and a careful structure for any transfer of funds.<\/p>\n

Ms. Bryan advised that the first consideration is whether helping is consistent with your own financial plan. \u201cRetirement is not simply a date, but a sequence of unknowns: market cycles, inflation, health needs and longevity. Supporting a child becomes reasonable only after confirming that such a transfer will not compromise income or liquidity decades into the future.\u201d<\/p>\n

I\u2019m three years away from retiring, but worried I\u2019ll run out of savings. How should I invest?<\/a><\/p>\n

This, she said, requires a full projection of retirement spending and a stress test across different market scenarios. \u201cWhen clients see the results presented plainly, the decision tends to appear with more clarity. Some have ample capacity to help. Others discover that a large withdrawal, especially near the start of retirement, could place their long-term stability at risk.\u201d<\/p>\n

The second issue is the impact of capital depletion. Academic research on retirement planning is consistent on this point: Withdrawing a significant sum early in retirement increases vulnerability to what is known as sequence-of-returns risk. Ms. Bryan cautioned that if markets decline shortly after the withdrawal, the portfolio may have less time to recover, shortening its lifespan. <\/p>\n

\u201cEven transfers that appear manageable can meaningfully reduce flexibility later, especially as you age and health care needs become decreasingly predictable,\u201d she said. \u201cFor this reason, I encourage clients to make decisions based on projected needs across a range of realistic outcomes rather than a single, optimistic estimate.\u201d<\/p>\n

Will our children need to pay capital gains on land they inherit?<\/a><\/p>\n

If clients decide they have the capacity to help, the next question is how to structure the support. In practice, Ms. Bryan said she often recommends a documented, zero-interest loan rather than an outright gift. \u201cThis is not a matter of mistrust; it is a way of protecting both parties over time. A formal loan agreement sets expectations, avoids ambiguity for other family members, and supports orderly estate planning.\u201d She also pointed out that in Canada, registering the loan on the property\u2019s title, after the primary mortgage, provides added security and helps avoid complications if circumstances change, including relationship breakdowns or future refinancing.<\/p>\n

This approach also keeps the decision aligned with the broader financial plan. \u201cA loan can be forgiven later if you so choose, but documenting it at the outset ensures that intentions made today remain clear in the future when memories or family dynamics may shift,\u201d Ms. Bryan said.<\/p>\n

For many, helping an adult child buy a home is a meaningful expression of support. However, Ms. Bryan advised it should be done with the same care applied to any other significant financial decision: By confirming that the retirement plan remains resilient, understanding the long-term impact of withdrawing capital, and structuring the transfer in a manner that provides clarity, stability, and fairness. \u201cWhen approached with deliberation rather than urgency, I find the decision tends to serve both generations well.\u201d<\/p>\n

Do you want advice on a financial planning or retirement issue that\u2019s affecting you? Send us an e-mail.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Illustration by The Globe and Mail Q: We\u2019re on the verge of retirement,…\n","protected":false},"author":2,"featured_media":460543,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,186,184,185,4825],"class_list":{"0":"post-505390","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-finance","12":"tag-personal-finance","13":"tag-personalfinance","14":"tag-r-fp"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/505390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=505390"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/505390\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/460543"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=505390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=505390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=505390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}