An article in the Financial Post this week offers a startling overview of a looming retirment crisis in Canada. The vast majority of baby boomers are woefully financially unprepared for retirement, due to a lack of savings. According to the article, over 75% of baby boomers have saved less than $100,000 for retirement. This is a shocking statistic in light of the fact that about 70% of Canadians own their own home.
See the article:
It is obvious that most wealth of baby boomers is therefore concentrated in their real estate (i.e. principal residence). At some point, there will likely be a need to convert that real estate wealth into cash and liquid assets, that can be drawn upon to fund retirment.
As I have written about in previous blog posts, current market conditions still strongly favour sellers in the Fraser Valley residential real estate market. It is a seller's market, at the time of writing. As such, as I've written about previously, baby boomers lacking cash flow for retirement should seriously consider 1) the financial benefits of downsizing and 2) the general benefits of downsizing their homes.
Being house poor is a condition that is neither fun to live under nor is it sustainable in the long-run. But there are many options in Fraser Valley markets to find smaller and/or cheaper housing options.
If you would like to explore your options please contact me today. I can discuss specific selling conditions in your area while also offering a FREE market evaluation of your home. No pressure. Never any strings attached.