Retirees may be reluctant to sell homes

Many pre-retirees fear running out of money long before they turn 80.

In fact, a new study by HomEquity Bank finds two out of ten pre-retirement respondents admitted they could outlive their savings within five years of leaving work.

That’s because nearly a third (29%) of those younger than age 55 and, more alarming, 35% of those who are already retired have saved less than $50,000.

Read: Majority needs help with retirement portfolios

When people run out of money, says Ed Weinstein, president of The Brondesbury Group, “they [must] turn to the money locked in their home[s] to give them a way to be comfortable. They have to learn to see [their homes] as an economic asset.”

Read: Is a home a nest egg or retirement risk?

The problem, however, is 47% of pre-retired respondents and 56% of those who are retired say staying in their homes is critical to maintaining quality of life.

For more on retired clients, read:

Gifts for new retirees

How much do single clients need in retirement?

U.S. retirement savings crisis worsens

Canadians worry about increased expenses in retirement

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.