1 November 2010
(Moreover, this ratio is very likely to climb because of rising home costs and consumers’ growing debt-addiction).
Such a debt situation can be not the only one problem in the future – there are three other possible trends Canadians may face later:
• Long-term stock market returns can be less than we’ve expected.
• More income will go to debt repayment instead of investments
• Pensions can make up less and less of the usual retiree’s income.
As we discussed earlier in “How mortgage can help or destroy your retirement?” houses can become primary financial source at retirement, as there’s always the possibility to use reverse mortgage – CHIP Home Income Plan. This program has become quite popular during the last five years and due to demographics and retirement savings trends it’s likely to increase even more.