A new study indicates that while nine in ten Canadians over the age of 65 would like to stay in their homes, many will not be able to afford to do so.
The study by HomEquity Bank, The Home Stretch: A Review of Debt and Home Ownership Among Canadian Seniors, published May 15, found that while 91 per cent want to stay in their homes, only 78 per cent have any savings and investments with 40 per cent of those having less than $100,000 set aside.
The study also indicates that 77 per cent of seniors say the Canada Pension Plan is their primary expected source of income and 73 per cent will rely on Old Age Security. Fifty-seven per cent of respondents say they have RRSPs to draw upon for income while another 48 per cent have a work pension and 48 per cent have savings.
15 per cent of seniors have mortgages
The survey also indicates that 15 per cent of Canadian seniors have a mortgage and 17 per cent have car loans. Meanwhile, 30 per cent of seniors surveyed had unsecured lines of credit and 10 per cent have a home equity line of credit.
"HomEquity Bank has long called for an honest, national conversation regarding the financial health of Canadian seniors. This study further solidifies that need," said Steven Ranson, president and CEO of HomEquity Bank, a company that offers reverse mortgages. "We can't rely on a status quo approach. Collectively, we will have to think about finances, home ownership and debt in new, strategic ways to ensure seniors can plan for a stable, worry-free retirement."