Are Canadians that different than those of us in the U.S. when it comes to thoughts — and plans — about retirement?

Just-released research from the Ontario Securities Commission (OSC) suggests that many Ontarians are basing their retirement nest-egg growth hopes on speculation that their homes are going to continue to appreciate.

While looking at real estate as a wealth-building option is generally a good thing, counting on your personal residence as your one and only “investment” may not be as smart.

Far better, in our estimation, is to make real estate investments a part of a greater, diversified strategy, which more and more people are doing with funds from their self-directed individual retirement accounts.

45% Surveyed Base Retirement Planning on Home Value

In the case of the OSC research, it was found that nearly half (45 percent) of pre-retired Ontario homeowners are relying on the value of their home increasing to fund their retirement. Homeowners without any retirement savings or plan are among those most likely to be counting on the continued appreciation of their home.

The survey also found substantial gender differences — for example, women aged 55 and older reported that they are more stressed when it comes to retirement planning, according to a news release about the research.

Homeownership No Substitute for Retirement Planning

“Owning a home is not a substitute for retirement planning,” Tyler Fleming, Director of the Investor Office, is quoted in the news release. “Research like our ‘Investing As We Age’ study is key to improving our understanding of investor needs and issues. It provides important, evidence-based inputs into the OSC’s policy development and our investor education and outreach.”

The research findings will be used to support the development of the OSC’s Seniors Strategy, which the OSC has identified as a priority for its 2017-2018 fiscal year.

The OSC’s research was conducted by Innovative Research Group and involved an online survey of 1,516 Ontarians, aged 45 and older, between May 9 and May 16, 2017. The results were weighted by age, gender and region using the latest Statistics Canada Census data to reflect the actual demographic composition of the adult population aged 45 and older residing in Ontario. The research findings are available online at InvestorOffice.ca.

For those of you who already are convinced of the merits of using a self-directed IRA for investing – in real estate and any number of other assets – and are looking to roll over your retirement portfolios, Investment Resource of AZ, LLC, can help. Contact us at 602-885-6122 or email info@azirarealestate.com.