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Canadians resting on their home laurels to fund retirement

The Ontario Securities Commission (OSC) reported this past September that too many Canadians are relying upon rising housing prices to fund their retirement, reports the Huffington Post.

The OSC carried out a survey that found that 38 percent — nearly one in four pre-retirees aged 45 and over — who owned their own home had no investment savings. The survey noted that pre-retirees with small investment savings, as well as those with large mortgages, were more likely to rely upon their home’s value to get them through their golden years. OSC’s Investor’s Office director Tyler Fleming warned that home ownership wasn’t a replacement for retirement planning, especially since real estate markets can’t be relied upon to continue to grow.

Another survey conducted this past summer by the Canadian Payroll Association revealed how dire the financial situation is for many in Canada. Half of the survey respondents said it would be difficult for them to meet their financial obligations if their pay cheque was delayed by even one week, CBC News reported. The survey also found that 35 percent of respondents felt overwhelmed by their level of debt, citing mortgage payments on principal residences as the most challenging to pay down, followed by credit card debt. ◊