TORONTO, May 17, 2021 – A large majority of Canadians 55 and up say government-run retirement savings plans will leave them unable to afford retirement and want an innovative solution to fulfil their long-term financial needs.
According to a new Ipsos survey, by HomeEquity Bank say 79% of older Canadians say they can’t bank on Registered Retirement Savings Plans (RRSPs), the Canada Pension Plan (CPP) and Old Age Security (OAS) for a comfortable retirement.
More than four-in-10 Canadians over 55 believe one of those options includes the ability to access the equity in their homes without having to sell. As it stands, the conventional approach to using homeownership as a way to fund retirement is to sell and downsize because that’s long been considered the right thing to do.
But that mentality is starting to change, as evidenced by 40% of older homeowners saying they would rather stay put in their homes and benefit financially by borrowing against the equity instead of trying to downsize in Canada’s red-hot real estate market.
“Downsizing isn’t as attractive as it used to be,” says HomeEquity Bank’s President and CEO Steven Ranson. “Given the amount of risk associated with moving and finding another suitable home, more than a quarter of older homeowners are considering accessing the equity in their homes instead of selling to help fund their retirements.”
Other Findings include
- HomeEquity Bank-commissioned Ipsos survey finds 88% of Canadians 55+ can’t fully pay for in-home care for their aging parents.
- Almost half of Canadians 55+ are now considering in-home care because of the pandemic.
More than 20% of Canadians 55 and up are considering tapping into their home’s equity to pay for in-home care due to COVID-19. Homeowners 55 and up are anxious for financial options to avoid moving away from the homes they love and into care facilities, particularly in the COVID-19 era. Home Run makes clear that reverse mortgages give older Canadians the solution they’re seeking — as well as essential peace of mind.