Almost a quarter of Canadians expect that their homes will be a primary source of income when they retire, according to a new survey. A big portion of the population was born after World War II and is set to retire from work soon. Many will sell their homes and will either buy smaller accommodation or rent and use the proceeds to live on.
This may not be the wisest plan, since there have been reports the Canadian housing market is over-heated and prices could soon fall.
Expected sources of income
On average, Canadians expect 10 per cent of their retirement income to come from home equity. The rest would come from the following sources:
- 30 per cent from government plans.
- 27 per cent from personal savings.
- 23 per cent from employer plans.
- 5 per cent from inheritance.
- 6 per cent from other sources.
Canadians expect to work on
Although the official age of retirement and the age at which pensions become available is 65, only 28 per cent of respondents foresee retiring at that age. More than half expect to work beyond that, and two-thirds think they will have to.
The survey was conducted for the Sun Life insurance company.
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