Many pre-retirees fear running out of money long before they turn 80.
In fact, a new study by HomEquity Bank finds two out of 10 pre-retirement respondents admitted they could outlive their savings within five years of leaving work.
That’s because nearly a third (29%) of those younger than age 55 and, more alarming, 35% of those who are already retired have saved less than $50,000.
When people run out of money, says Ed Weinstein, president of The Brondesbury Group, “they [must] turn to the money locked in their home[s] to give them a way to be comfortable. They have to learn to see [their homes] as an economic asset.”
The problem, however, is 47% of pre-retired respondents and 56% of those who are retired say staying in their homes is critical to maintaining quality of life.
This story originally appeared on our sister site, Advisor.ca.