Unemployed dad and disabled child put family in financial jeopardy

Family Finance A British Columbia couple we’ll call Harry and Evelyn, both 60, have accepted the reality of retirement. Harry was laid off a few months ago and accepts that he is unlikely to find more work in his hightech field. Evelyn did retire a few months ago from an administrative position and has a modest defined benefit pension. They live with Kim, their mid-20s child, who has a learning disability.

The family’s combined income from all sources, about $5,350 a month after tax, contains Harry’s soon- to-expire employment insurance benefits of $2,172 a month before tax, Evelyn’s $1,710 pre-tax pension, $875 monthly bridge pension before tax that expires at her age 65 when Canada Pension Plan benefits begin, and $930 monthly pre-tax income from her gift shop. Kim currently earns $232 a month from part time work and receives $941 each month from a B.C. Persons with Disabilities Benefit plan. Kim lives with Harry and Evelyn but would like to live independently. Another child almost 30 is independent.

For now, Harry and Evelyn are financially secure, but they are apprehensive about the future. Kim will be dependent as long as she lives. Two-thirds of their approximately $1.9 million net worth is in their house — a common feature of B.C. families’ financial lives. Another two per cent is in cars and other vehicles. That leaves financial assets that are just 32 per cent of net worth.