Six in 10 Canadian homeowners looking for more guidance on retirement

Older Canadian homeowners are signalling a clear appetite for retirement guidance from their employers and HR teams, according to a recent report.

Six in 10 respondents (60 per cent) to a survey say they would like to better understand the financial options available to them in retirement.

Another two-thirds (65 per cent) say providing their family with a living inheritance would be deeply meaningful, according to a new survey released by EQ Bank during Seniors Month.

"We believe they deserve greater choice and financial freedom," says Daniel Rethazy, EVP, personal banking, at EQ Bank.

The survey also found that confusion about retirement products is widespread. Among respondents who had heard of a reverse mortgage, 53 per cent believed the lender takes ownership of the home and 45 per cent believed a borrower could end up owing more than the home is worth — both of which EQ Bank says are false. 

While more Canadians are saving for retirement and joining workplace pension plans, many remain confused, anxious and underprepared for life after work, according to two previous reports.

Financial strain forcing cutbacks

The appetite for guidance comes against a backdrop of real financial pressure. EQ Bank found that 69 per cent of homeowners aged 45 and older have reduced their spending over concerns about their finances in retirement, with cutbacks extending well beyond discretionary items.

Respondents reported trimming spending on: 

• pricier food and groceries (39 per cent)
• small personal treats (39 per cent)
• charitable donations (30 per cent)
• hobbies or leisure (28 per cent)
• necessary health-care services such as dental, vision or physiotherapy (14 per cent). 

Over half (53 per cent) say their retirement savings had been negatively affected by economic uncertainty over the past year, and roughly six in ten (61 per cent) say they worry about being financially comfortable in retirement.

Confidence is thinning as well. Nearly a quarter (24 per cent) of those who expect to fully retire said they are not confident they will have enough money to live the retirement they had pictured. For employers, that uncertainty turns retirement from a planned date into a moving target that complicates succession and workforce budgeting.

'Sandwich generation' feels squeeze

A second cluster of findings centres on the so-called sandwich generation — workers, typically in their 40s to 60s, who support both children and aging parents. EQ Bank found that 68 per cent of respondents aged 45 to 54 are financially supporting family members, including children, adult children, aging parents or other older relatives.

Within that group, 58 per cent say supporting their families had directly affected their ability to save for, plan for, or live comfortably in retirement. These employees are often mid-career managers and skilled specialists carrying peak earning responsibilities and peak caregiving demands at the same time.

EQ Bank framed the trend as a break from past expectations, noting that family obligations are increasingly reshaping how its older customers plan for retirement. 

A previous report from LiveCareer notes that 41% have made changes to their investment strategy due to market instability.

“People aren’t just tweaking their timelines, they’re fundamentally rethinking what retirement looks like,” says Jasmine Escalera, career expert at LiveCareer, in a statement emailed to Canadian HR Reporter. “Even those with solid investments are worried about what comes next. It’s not about giving up on retirement, but about staying afloat, adapting to uncertainty, and protecting what they’ve built.” 

Home equity and reverse mortgages

The EQ Bank survey points to home equity as a central variable in retirement planning. More than half of respondents (56 per cent) say much of their wealth is tied up in their home rather than available as cash, and roughly a third (31 per cent) say home equity already is, or will be, an important source of retirement income.

"Historically, Canadians counted on a more predictable pathway to retirement, which has rapidly changed and left many searching for options to adjust their plans accordingly," says Zamina Walji, Vice President, Decumulation Businesses. "As Canada's retirement income gap grows, reverse mortgages are emerging as a powerful, underused solution to unlock housing wealth and help older Canadians age in place."

Canadian HR Reporter previously detailed the pros and cons of offering housing benefits.