Nearly a quarter of Canadians plan to use their homes as their primary source of income after they leave the workforce, according to the 2014 Sun Life Canadian Unretirement Index.
The survey also revealed that 17 per cent do not know if their investment in their home will serve as their primary source of income during retirement.
At the same time, 28% of Canadians expect to be retired at 66. But among Canadians closest to retirement, those aged 55 to 65, the average expected retirement age is 67.
Fifty-six per cent are expecting to work past the traditional retirement age, with 65% citing they will need to.
“The average expected retirement age in Canada has hit its lowest level in four years – it’s 66 this year, down from a high of age 69 in 2011,” said Kevin Dougherty, president of Sun Life Financial Canada.
“With people living longer and more Canadians expecting to retire sooner, it’s important to look at what savings you will need to be fully prepared and how having a financial plan can help protect against risks that can be magnified in retirement such as market shocks and health events.”
Canadians on average expect approximately 10% of their retirement income to come from home equity. They expect:
– 30% to come from government plans;
– 27% to come from personal savings;
– 23% to come from employer plans;
– 5% to come from inheritance; and
– 6% to come from other sources.
Some market experts predict that Canadian expectations about not relying on home equity may change due to economic factors.
