19 February 2014
Mr. Adatia believes the stock market correction in 2008 may have changed people’s retirement plans so they focused on their homes.
In addition to it, home values growth helped many Canadians close to retirement age believe they’ve earned quite a lot.
The survey shows that Canadians expect, on average, 10% of their retirement income to come from their houses. Another 30% should be supplied by the Government pension plans, 27% is expected to come from personal savings, 23% – from employer plans, 5% – from inheritance and 6% – from certain other sources.
Nevertheless, only 28% of Canadian citizens are expected to retire by 66. Meanwhile, 56% of Canadians may still work past retirement age, and 65% of them said they would have to do it.
In our opinion, appreciation of home value is a great thing, but counting only on one class of assets for your retirement can be very dangerous. Please diversify your portfolio and talk to your financial advisor for the best solution in your particular situation.