Vancouver Life In 7 Paragraphs
House-rich, but savings-poor Homeowners may face difficult decisions at retirement.
THE LATEST HOMEOWNER DEBT SURVEY reveals many Canadians find it difficult to pay for today and plan for tomorrow. Faced with rising housing costs, homeowners struggle to balance daily expenses, debt repayment and saving.
Demands on dollars Only 4 in 10 are very confident they’ll save enough for retirement. More than 1 in 3 were “caught short” of cash to meet monthly expenses at least once in the past 12 months. Fewer than 2 in 3 expect to be mortgage-free at retirement.
House-rich but savings-poor 26% expect home equity to make up more than 80% of their wealth at retirement. 17% think home equity will be 61%–80% of their wealth.
Moving on but not out 94% want to remain homeowners during the first years of retirement. 74% of people in their 50s want to stay in their current home when they retire.
Retirement reboot Heading into retirement house-rich but savings-poor may force homeowners to rethink their plans:
■ Retire later than planned ■ Accept a lower standard of living ■ Downsize their home ■ Borrow against home equity
You can create a plan that balances spending, debt repayment and saving. If you’re concerned about your financial situation entering retirement, consider consulting a professional.
Discipline is what it takes to block out the noise, commitment is what it takes to walk the path to financial success and patience is what it takes to reach the goal.