Housing Changing Retirement Plans

Current market conditions are changing people's home ownership plans and it's a trend that could have lasting impacts on retirement planning, says a Canada Life survey. It finds that high real estate prices are not only preventing many renters from entering the housing market, but they're also causing current homeowners to feel house poor. Almost half of the respondents who rent (45 per cent) will either continue renting indefinitely or aren't sure when they will buy. Paul Orlander, executive vice-president, individual customer, at Canada Life, says, "While buying a home can help you build equity that could be valuable to one's long-term financial plans, renting may provide more peace of mind around affordability, flexibility and lower housing costs which could leave more for savings and investments each month."