Consider tapping into your home equity for retirement income: financial commentator

One personal finance expert says that Canadians of retirement age should consider tapping into the equity in their home if they are facing liquidity concerns.

Chief Financial Commentator for CHIP Reverse Mortgage Pattie Lovett-Reid said in an interview with BNN Bloomberg Friday that the top concern she hears among older Canadians is that they will outlive their money. According to Lovett-Reid, the average 65-year-old has an annual income shortfall of about $20,000. 

“People see equity in their home and it's sacred, ‘I'm never going to touch it’,” Lovett-Reid said. 

“Canadians on average have less than $200,000 saved for retirement, so the fear of outliving their money is very real. So they've got to give themselves permission.”