The BMO Retirement Institute has released a report stating one-third of baby boomers are planning to sell their home to help fund their retirement.
The report, which examines the relationship between Canadians readiness for retirement and their attitudes regarding home ownership, found 32 per cent of respondents believe living comfortably in retirement is the most financial accomplishment to achieve over a lifetime but 40 per cent are not confident they can save enough to fund their ideal retirement lifestyle.
“The reliance on home equity to fund retirement is no surprise given that almost half of Canadians say that their home is their biggest financial asset and, on average, accounts for half of their total net worth,” said Marlena Pospiech, retirement strategist, BMO Retirement Institute. “While it is true that, in the past, Canadians have enjoyed a stable housing market and increasing real estate values, there is no guarantee that this trend will continue. As a result, individuals shouldn’t count exclusively on their homes to fund their retirement and should be focused on building up their personal retirement savings.”
Challenges boomers face when deciding whether to stay in their home or sell it includes market fluctuations, attitudes towards homeownership and lending standards.
What effects do you see baby boomers having on the Calgary real estate market?