Canadian seniors consistently report that they prefer to live at home and age in place, instead of moving to assisted living. 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.
“Every day, our team hears from older Canadians who want to remain in their homes and communities, but find the financial challenges very stressful,” says Yvonne Ziomecki, SVP, HomEquity
Bank. “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.”
According to the FCM report:
- 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.
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.
Bank stats show 30% of Canadians nearing retirement have $50,000 or less in savings. And, almost 70% of those nearing retirement are still carrying debt, with 35% of Canadians nearing retirement planning on using the value of their home to generate retirement income.