Canadian seniors would rather spend their money on a comfortable retirement than provide a large inheritance to their loved ones, according to a new poll from Toronto-based HomEquity Bank released on Wednesday.
“Seniors are not feeling pressured about leaving an inheritance,” says Yvonne Ziomecki, senior vice president with HomEquity Bank, in a statement. “They’re very comfortable with wanting to enjoy their retirement.”
According to the 2016 Seniors’ Views of Inheritance study, 86% of Canadian seniors aged 55 and older would not give up doing, achieving or acquiring something in order for their children to receive a larger inheritance. Furthermore, 62% of seniors say they are not very concerned about leaving any kind of inheritance to their kids. That number jumps to 71% for Canadians over the age of 65.
In fact, Canadian seniors are likely supporting some of their spendthrift ways with a reverse mortgage, Ziomecki suggests: “Canadian seniors are willing to tap into the equity of their home to help finance their lifestyle. They’ve watched the value of their home increase dramatically and they are accessing this equity to enhance their golden years.”
Making the most of a retirement doesn’t mean parents have to completely forgo leaving an inheritance to their children if they wish to do so, though, she adds.
“With the majority of our clients, they know there will still be an inheritance that will go to their children,” Ziomecki says. “In fact, on average, our clients have more than 50% of the equity left in their homes at the time of sale.”
Ipsos Canada gathered the survey results from a sample of 750 Canadians aged 55 and older from Aug. 22–24 on behalf of HomEquity.
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