We’ve all heard the friend or colleague bemoaning their lack of retirement savings saying, “My home is my RRSP [Registered Retirement Savings Plan].” A new poll indicates that, for most Canadians actually facing retirement, that’s just not true.
The poll by Ipsos, released in July 2018, found that 93% of Canadians aged 65 and over feel it’s important to stay in their current home.
According to these homeowners, staying at home during retirement is about maintaining a sense of independence during their retirement years.
Fifty-one per cent say they want to stay close to family, friends or their community, while 40% say emotional attachments and memories mean it’s important to remain in their current home.
In contrast, it seems the further you are from actually retiring, the more likely you are to imagine moving out upon doing so. Just 68% of those aged 35 to 44 felt the need to stay in their pre-retirement home.
The poll points to the folly of expecting your home’s value to provide for you in retirement. A well-planned mutual fund portfolio as part of your retirement savings plan is one of the best ways to ensure you’ll have choices about your home when retirement becomes a reality.
Source: Ipsos poll for HomeEquity Bank, released July 16, 2018.
Larry Kleinmintz, R.H.U., T.O.T., M.D.R.T.
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