On January 31, the following was published in the on-line edition of the Toronto Star. It is worth reading if you are one of the many who are real estate rich and cash poor.
In our role as your trusted Realtor, we are privileged to sit in with the family discussions regarding the value of selling or keeping the family home. We happily share our 26+ years of experience in these matters and hopefully offer some options. The information in the quoted article here is from what we've heard, pretty accurate.
"Many Canadians plan to turn to part-time work and the sale of their home to fund their retirement, according to a survey for the Bank of Montreal.
Many are also factoring an inheritance into the plan, as well as support from their children and extended family. More than a third are counting on the lottery, even though the odds of winning the Lotto 649 jackpot are about 1 in 14 million.
The online survey of 1,003 Canadians 18 years of age and over, was conducted for the bank by Pollara Strategic Insights. It found that a third of the sample plan to rely “heavily” on the Canada Pension Plan despite the fact the average monthly CPP payment is only $535 a month.
Pollara asked about the ways beyond the CPP that Canadians hope to fund their retirement. They found that:
- 88 per cent will use personal savings such as Registered Retirement Savings Plans (RRSPs) and Tax Free Savings Accounts (TFSAs);
- 59 per cent expect to have a part-time job;
- 40 per cent expect an inheritance;
- 34 per cent hope to win the lottery with 14 per cent saying they are relying heavily on that outcome;
- 28 per cent anticipate support from family or children.
“To those hoping to win the lottery, a much better bet would be to develop a retirement savings and to start contributing as early and as often as possible," said Chris Buttigieg with BMO’s Wealth Planning group in a statement.
- Adam Mayers"