Why Homeownership No Longer Secures Seniors’ Retirement Finances

There’s a widespread assumption that owning a home guarantees financial stability, but a new study from the University of Calgary suggests that’s no longer certain for many older Canadians. The March 2025 Social Policy Trendsstudy surveyed 715 Albertan seniors—both homeowners and renters—about their finances and housing security.

While the research looked at housing insecurity generally, the clearest worry among homeowners wasn’t rent: it was the rising cost of maintenance and upkeep. Below is a closer look at what’s making homeownership more difficult for seniors, plus practical steps to manage finances and access home equity responsibly.

Homeownership no longer guarantees financial security

Owning a home has long been seen as a cornerstone of retirement security, but that perception is changing. The University of Calgary study found that 34% of senior homeowners are concerned about affording home upkeep, and 16% have considered selling because of financial pressure. These figures underline how maintenance costs, property taxes, and day-to-day expenses can erode the safety homeowners once felt.

Ben McCabe, founder and CEO of Bloom Finance, echoes those concerns from his work with seniors. He notes that many feel vulnerable: “Two-thirds of seniors feel financially vulnerable, and 40% of Canadians approaching their retirement years are thinking of putting it off or returning to the work force.” McCabe points to persistent inflation, rising living costs, and property taxes as key drivers that reduce cash flow for retirees whose wealth is largely tied up in their homes.

Many seniors have most of their net worth locked up in home equity but no straightforward access to that money without selling the home. That illiquidity can create a cash shortfall for routine expenses, unexpected repairs, or healthcare costs, making retirement feel financially precarious.

How Canadians plan to pay for retirement

Home equity is only one part of the retirement funding mix. According to the 2025 Retirement Stability and Financial Support survey by Bloom and Angus Reid, Canadians report relying on multiple income sources. The most commonly cited are:

• 72% Canada Pension Plan (CPP) or Quebec Pension Plan (QPP)
• 65% personal savings
• 61% Old Age Security (OAS) and Guaranteed Income Supplement (GIS)

These public benefits and personal savings are essential, but when retirement budgets tighten, relying on them alone may not be enough—especially for homeowners facing rising property-related costs.

What seniors can do to alleviate financial strain

Feeling overwhelmed is understandable—many retirees built their plans during periods of low inflation and now face higher costs. McCabe recommends starting with a clear, detailed picture of cash flow. That means going beyond a simple monthly budget and preparing a short-term spending plan that separates expenses into three practical groups:

• Need to have: Essentials like housing, food, utilities, transportation, and medication.
• Nice to have: Discretionary items you value but can reduce if needed.
• Not right now: Larger, non-urgent expenses that can be delayed or saved for over time.

This visibility exercise helps identify any shortfall and quantify it, making it easier to evaluate options: scale back discretionary spending, consolidate or manage debt, or find additional income sources. For some seniors, solutions include delaying retirement, taking on part-time work, or downsizing to lower monthly costs and free up equity.

There are also ways to access home equity without selling. Traditional options like a reverse mortgage can provide a lump sum or ongoing monthly payments, typically repaid when the home is sold or the borrower moves out. Newer financial products allow homeowners to draw smaller amounts from their equity over time. For example, some lenders offer prepaid cards tied to home equity that let homeowners borrow modest sums as needed; Bloom’s Home Equity Prepaid Mastercard lets eligible customers borrow up to $2,000 per month against their home equity.

The bottom line

If you’re a senior feeling the squeeze from rising costs, you’re not alone—and there are practical steps you can take. Start by building a clear cash-flow plan, categorize your expenses, and determine any shortfall. Speak with a trusted, non-profit credit counselling agency or a qualified financial advisor to explore options tailored to your circumstances.

By tightening discretionary spending, considering downsizing or partial access to home equity, and choosing the right financial products, many seniors can strengthen their retirement finances and ease daily pressure. The key is to act early and make a plan that preserves both housing stability and peace of mind.

Read more about retirement:

• Are you really ready to retire? Why many Canadians are struggling with retirement planning
• Canadians fear a tougher road to retirement—and plan to help their kids along the way
• With pensions declining, Canadians must plan their own retirement