Nov 24, 2016
By Jane Brown
It seems there’s a big gap between the lifestyle expectations of Canadians who are aged 40-plus and reality.
A new HomEquity Bank study suggests 82 percent of Zoomers want to stay in the homes for retirement.
At the same time, almost half of those who say they’ve already retired have outstanding debt and 40 percent report savings of less than $100,000. And a quarter of those respondents aged 75-plus still have a mortgage.
This contradiction is reinforced by research that shows nearly 70 percent believe the value of their home equity is important to the retirement plans.
Other key findings from the research include:
69 per cent expressed confidence that they have sufficient funds to retire;
78 per cent have savings and investments;
25 per cent include the sale of their home as a factor in retirement income;
Paying off a mortgage is a surprisingly low priority for the seniors that still have one (25 per cent of those surveyed who are 75 +);
43 per cent of retirees have debt with 73 per cent of the debt being less than $50,000; and
35% of Canadians 75+ have debt.
“This data shows a deeply troubling gap between perception and reality,” said Yvonne Ziomecki, SVP, Marketing & Sales at HomEquity Bank. “Canadian seniors are among those with record household debt levels and also surprisingly minimal savings. Solutions must be based on a solid understanding of all the options available, including reverse mortgages that allow seniors to unlock the soaring value of their home equity.”