The pros and cons of retired grandparents moving closer to their families

As families with young children relocate to other parts of the country, some grandparents are following them.
Grandparents are either moving in with their adult children – who create a separate suite within their home – or purchasing their own residence nearby. In some cases, they explore newer real estate solutions such as laneway houses or tiny houses on their child’s property.
Shay Steacy, certified financial planner (CFP) at Modern Cents in Brockville, Ont., lives in a tiny house for environmental and sustainability reasons but sees her clients exploring this type of housing for their aging parents.
“I have a dishwasher and laundry and a full house. It just happens to be tiny,” she says.
Some also consider these houses because they’re a more affordable option for grandparents wanting to be close to their kids in expensive cities such as Toronto and Vancouver.
“They have their own space and everything they need in one place,” Ms. Steacy says.
Seun Adeyemi, CFP at Odyssey Wealth in Ajax, Ont., notes that parents with young children may struggle with daycare – either financially or finding a vacancy as waitlists can be several months long. Grandparents can bridge the gap.
Mr. Adeyemi has a client whose mother moved to Ontario from Manitoba to help take care of her grandkids. That can take a lot of stress off the parents and improve the family’s overall physical and mental health, not to mention their financial situation, he says. “For some families, it just makes sense.”
Adam Weersink, CFP and partner at Cox Financial Group Ltd. in Lethbridge, Alta., says many grandparents have much of their net worth tied up in their homes. Downsizing and moving closer to family can allow them to pocket proceeds to inject into their retirement fund.
He’s seen more families pool their funds to buy a house than grandparents purchasing their own house nearby. Multigenerational households are one of the fastest-growing type of households, growing in number by 21 per cent since 2011, according to Statistics Canada. More than 441,000 households (or 6.4 per cent of Canada’s population) were classified this way in 2021, compared to around 406,000 in 2016.
“The thinking is that families can benefit by sharing costs and reducing property costs,” Mr. Weersink says.
Grandchildren aren’t the only reason grandparents are moving closer to their adult children. Chris Stephenson, CFP and investor specialist at Steadyhand Investment Funds in Vancouver, says his mother moved in with his family after his father passed away. She required full-time care for dementia. While she wanted to be closer to her grandkids, quality of life was her primary consideration. She felt she’d be happier at their home versus a long-term care facility, he says.
Meanwhile, Mr. Stephenson’s father-in-law is contemplating a move to Vancouver, weighing the options between being close to family versus remaining in an active community with lifelong friends.
Following family to a new locale isn’t without challenges. Mr. Weersink has a client who moved back to Alberta from British Columbia due to difficulty accessing health care.
He cautions clients who have a family doctor and access to medical specialists not to assume they’ll have the same situation when they relocate.
“As you age, health care is everything,” he says.
Other grandparents may eventually tire of a life of babysitting and chauffeuring, and miss their old social networks.
“They likely had some purpose in retirement beyond just being the grandparents,” Mr. Weersink explains. “As much as they love their family, some people struggle with transition.”
Mr. Stephenson concurs that the loss of close friends nearby can be difficult for this demographic. He also says the benefits of family being close together doesn’t work in all situations.
He’s observed some grandparents “riding in to help their kids” only to end up being seen as an imposition. There may be issues such as not getting along with a son- or daughter-in-law once they’re around all the time.
“The living arrangement may not turn out to be what they thought it would be. The walls are too close,” Mr. Stephenson explains.
That’s why grandparents need to be honest with themselves, he says, and weigh the positive and negative aspects before making the move.
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