No place like home, retirees say

Retired Canadians aren’t budging.

According to an Ipsos Reid survey conducted for HomEquity Bank (provider of CHIP Home Income Plan), 61% of retired Canadians intend to stay in their current home as long as possible after retirement.

At 76%, Atlantic Canadians were the most likely to want to stay, followed by those living in Saskatchewan, Manitoba (73%), Ontario (62%), Alberta (61%), Quebec (56%) and British Columbia (50%).

The survey also found the average Canadian wants to retire by the age of 61 but nearly half (48%) do not feel they are financially prepared for a satisfactory retirement. Of those respondents, 36% indicated they would consider leveraging their home equity to make that possible. It seems personal debt plays a large role in those decisions too: 28% say a mortgage is their primary source of debt; 23% cited a line of credit; and 16% said high-interest credit cards as their main source of debt.

“There is an obvious disconnect between the ideal retirement goals of Canadian seniors and their current financial position,” said Greg Bandler, senior vice-president, HomEquity Bank. “Debt may be a major factor affecting retirement plans, but responsibly leveraging home equity can allow Canadian seniors to improve cash flow and eliminate high-interest debt, while maintaining ownership of their family home. In this way, homeowners can turn their home into a liquid asset that contributes to their financial plan.”

The survey polled 1,054 Canadians aged 45 to 60.