A recent survey by Manulife Bank Canada has found that some homeowners are struggling to pay their bulls, but that being debt-free is a major priority among homeowners in Canada.
According to the survey:
- 60% of homeowners are not sure if they’ll have enough saved for retirement
- 37% couldn’t pay their bills at least once within the last year
- Over 30% don’t expect to be mortgage-free by retirement
- More than a quarter of homeowners thing home equity will make up the majority of their retirement wealth
- 74% of people over 50 want to remain in their current home during retirement
“Our research has consistently found that becoming debt-free is among the top financial priorities for Canadian homeowners,” said the President and Chief Executive Officer of Manulife Bank of Canada, Rick Lunny. “They must also find a balance between debt repayment and saving for retirement so they don’t end up house-rich and asset poor. The best option is to work with an advisor to get a plan in place well before retirement to balance debt repayment, retirement savings and day-to-day spending.”
Those who choose to remain savings poor but house rich during their retirement may have to borrow against their home equity, downsize their home, accept a lower standard of living or retire later.