Canadian seniors consistently report that they prefer to live at home and age in place. Yet, they also report that financial challenges are the biggest hurdle to doing so.
A recent report from the Federation of Canadian Municipalities (FCM) shows that 93% of seniors live at home and prefer to age in place. And, HomEquity Bank statistics support this, reporting that 60% of retired Canadians describe staying in their home as ‘critical to their quality of life’.
However, the FCM report outlines: 700,000 senior-led households face a housing affordability challenge; a combination of modest incomes and high living costs mean that one in four senior-led households are spending more than 30% of their income on shelter; and, seniors who live alone experience poverty at twice the rate of other seniors.
“Every day, our team hears from older Canadians who want to remain in their homes and communities, but find the financial challenges very stressful. We work with seniors to help them explore utilizing the equity in their homes so they can continue to live in a familiar environment – which in most cases is the family home,” states Yvonne Ziomecki, SVP, HomEquity Bank.
One reason finances have been adversely affected, notes the FCM study, is because only one-third of the Canadian workforce is covered by a registered pension plan, down from 37% in 1992.
Also, according to HomEquity Bank stats, 30% of Canadians nearing retirement have $50,000 or less in savings. And, almost 70% of those nearing retirement are still carrying debt. Thirty-five per cent of Canadians nearing retirement plan to use the value of their home to generate retirement income
“Seniors who are living on modest incomes face challenges to their economic security. HomEquity Bank allows seniors to access their housing assets without impacting CPP or OAS, which can lead to better quality of life in retirement,” adds Ms. Ziomecki.
HomEquity Bank, the only Canadian bank working exclusively with seniors, helps elderly people remain in their homes through its CHIP reverse mortgage solution. Seniors can supplement their income via reverse mortgage monthly or lump sum payments.
For more information on CHIP Reverse Mortgages contact me for a no obligation consultation.