Being truly retirement-ready is not just about savings

As Canadians approach retirement, they often anticipate a shift - less work stress, more freedom, and cherished time with family. However, financial anxiety looms over many. Are their savings really enough to support their retirement dreams?

Recent surveys echo these concerns, revealing that over 75% of soon-to-be retirees having under $100,000 saved. With 2 or more decades of retirement ahead and the ever-increasing cost of living, the challenge of saving enough is widespread.

The risk of depleting investments too quickly is real, with funds potentially running dry within 10-15 years. A significant portion of Canadians over 60, more than 50% in fact, find themselves needing to work longer just to make ends meet. Despite their emotional readiness to move on to the next phase of life, financial constraints force them to prolong their working years.

Similarly, individuals aspiring to retire and pursue passion projects or career changes encounter harsh financial realities. Reductions in income or benefits often make it impossible to pursue their dreams, leaving them feeling trapped in their current situation, even when they are emotionally prepared to move on.

So, what does it truly mean to be "retirement ready"? It goes beyond just having a certain amount saved; it's about achieving both financial security and emotional well-being. True retirement readiness means having the freedom to retire when you choose, on your own terms, without feeling forced to work due to financial constraints.

Fortunately, there's an often overlooked retirement asset that can help bridge the savings gap without disrupting your ideal retirement timeline or forcing you into undesirable work: your home equity, accessed through a reverse mortgage.

A reverse mortgage allows you to tap into the tax-free funds tied up in your home equity over time, without the burden of monthly payments. This provides supplementary income to cover any shortfalls, preventing you from depleting your savings too quickly and ensuring that your hard-earned money lasts longer.

Ultimately, reverse mortgages offer the flexibility to retire comfortably when you're ready, without the financial pressure to keep working. The key is to utilize all available retirement resources wisely.

Retirement readiness is more than just reaching a certain savings milestone. It's about achieving both emotional freedom and income stability, enabling you to embrace this new phase of life on your own terms. If you are feeling like you might be ready but need the building blocks to help get you there, let’s connect to discuss how a reverse mortgage might help you.