The survey found 24 per cent of those polled planned to use their homes as their main retirement income. Another 17 per cent indicated they didn't know if their home equity would serve as their primary income source. 59 per cent said they disagree.
“The fact is that many people don’t have access to pension plans at work,” Kevin Dougherty, president of Sun Life Financial Canada, said. Many also do not have significant personal savings, making home equity more attractive, he added.
But real estate is a volatile asset class and can’t be counted on to sustain high values forever, Mr. Dougherty cautioned.
“It is really quite striking how fast home equity can disappear. One needs to really think through whether that strategy will work and whether it will be enough.”
Canadians also appear to have abandoned the idea of early retirement.
The survey found only 28 per cent of Canadians expect to be fully retired by age 66. Twice as many Canadians (56 per cent) say they expect to work beyond the normal retirement age of 65, with two-thirds of them reporting they'll need to work. The survey was conducted by Ipsos Reid using online interviews with 3,005 working Canadians between 30 and 65 years of age, from Ipsos‘ online panel.
The survey is accurate to within plus or minus 2 percentage points had all Canadian adults been polled.
(Source: The Globe and Mail, click here to read the article - 24% of Canadians see their homes as main source of retirement income)
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