Spending cutbacks span groceries to healthcare as affordability anxiety grips those nearing or in retirement
Older Canadian homeowners report struggling with economic turbulence over the past year, leaving a visible dent in their financial security.
Research conducted by the Angus Reid Group in mid-May surveyed 1,306 Canadian homeowners aged 45 and over and found that 53% had seen their retirement savings negatively affected by economic uncertainty, while 61% expressed worry about their ability to live comfortably in retirement.
Nearly a quarter of those who expect to fully retire at some point said they lack confidence that their money will support the lifestyle they had envisioned.
Nearly seven in ten respondents said they had already cut back on spending in response to retirement affordability concerns, including 39% who are spending less on food and groceries, 39% who have trimmed small personal or discretionary purchases, 30% who have pulled back on charitable giving, 28% who have curtailed hobbies or leisure activities, and 14% who have reduced spending on necessary healthcare services such as dental, vision or physiotherapy.
More than half of respondents said they feel that the bulk of their wealth is locked up in their property rather than accessible as cash or liquid savings, while 31% said home equity is already, or will become, a meaningful income source in retirement.
Sandwich generation
The survey also highlights the financial squeeze facing what researchers often call the sandwich generation — those typically in their 40s and 50s caught between supporting both younger and older family members while trying to build their own retirement cushion.
Among respondents aged 45 to 54, 68% reported providing some form of financial support to family members, whether children, adult children, aging parents or other relatives. Of that group, 58% said those obligations had directly affected their capacity to save for or live comfortably in retirement.
"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," said 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."
Awareness gaps compound the challenge. Among respondents familiar with reverse mortgage products, 53% incorrectly believed the lender takes ownership of the home, and 45% thought a borrower could end up owing more than the property is worth.
Despite the uncertainty, the data reveals an enduring priority around family legacy: 65% of respondents said providing a living inheritance to family members would be deeply meaningful to them. Meanwhile, 60% said they would welcome a better understanding of the financial options available to them heading into retirement.
