Why home ownership doesn’t offer seniors financial security

While the study examined housing insecurity more broadly, the most important concern was not rent, but the fee of maintaining a house. Here’s a better take a look at what makes homeownership difficult for seniors and a practical guide to adjusting your funds.

Home ownership now not guarantees financial security

Owning a house is commonly viewed as a financial safety net – especially compared to renting. But for a lot of seniors, this sense of stability begins to vanish. This is what the study by the University of Calgary revealed 34% of older homeowners worry about whether or not they can afford maintenance for his or her homes and 16% have considered selling leave their homes for financial reasons.

These results align with what Ben McCabe, founder and CEO of Bloom Finance, hears firsthand from seniors. “Two-thirds of seniors feel financially vulnerable and 40% of Canadians approaching retirement are thinking about delaying their retirement or returning to the workforce,” he said.

So what’s driving this uncertainty? McCabe noted that prime property taxes, high costs of living and years of inflation which have eroded savings are taking their toll. For many seniors, a big portion of their wealth is tied up of their home. Without clear access to this equity, they might find themselves financially strained and strapped for money.

How Canadians plan to pay for his or her retirement

For many seniors, home equity is only one piece of the retirement puzzle. Most depend on a mixture of income sources to make retirement work. According to the 2025 According to a survey by Bloom and Angus Reid, Canadians plan to fund their retirement:

What seniors can do to ease the financial burden

“It’s easy to feel overwhelmed, especially if you’ve spent your career in a 2 percent environment. [low -inflation] “The environment and retirees find the cost of living significantly higher,” says McCabe. His first advice is to get a transparent picture of your money flow through a visibility exercise.

This starts with greater than an easy monthly budget. Instead, take a better take a look at your upcoming expenses and type them into three categories:

• Must have: Essential costs corresponding to accommodation, food, utilities, transportation and drugs
• Nice to have: You enjoy discretionary spending but can reduce it if crucial
• Not in the meanwhile: Major or non-urgent expenses that may be delayed or saved over an extended time frame

This exercise will allow you to determine whether there’s a deficit and to what extent. With a transparent number in mind, it becomes easier to judge your options: adjust expenses, manage debt, or find additional income.

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For some seniors, this might mean delaying retirement or downsizing to scale back monthly expenses and stretch retirement savings even further. For others, it could mean accessing home equity without selling it. For example, a reverse mortgage may provide for a lump sum or monthly payments which might be typically repaid once you progress or sell the house.

Some newer products also offer more flexible ways to access smaller amounts of equity over time. For example, certain lenders offer prepaid cards tied to home equity, allowing homeowners to borrow modest amounts when needed while continuing to live of their homes. Bloom offers a Home Equity Prepaid Mastercard that means that you can borrow as much as $2,000 of your own home’s equity every month.

The final result

If you are a senior feeling the pressure of rising costs, you are not alone—but keep in mind that you’ve options. First, get a transparent picture of your budget and consider speaking with a nonprofit credit counseling agency who can allow you to tailor advice to your situation.

With a number of spending adjustments and a thoughtful approach to accessing home equity, many seniors can strengthen their financial stability and ease among the pressures of on a regular basis life.

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About Jessica Gibson

Jessica Gibson is a private finance author with over a decade of experience in online publishing. She enjoys helping readers make informed decisions about bank cards, insurance, and debt management.