Cross-border trade tensions nudge more seniors toward unlocking home equity
Canadian seniors are increasingly anxious about the impact of tariffs and the state of Canada-US relations on their financial security, highlighting a shift in retirement planning priorities.
About 67% of Canadians are very concerned about Canada-US relations, matching their concerns over the cost of living (67%) and general economic uncertainty (65%), according to the 2025 Canadian Retirement Survey by the Healthcare of Ontario Pension Plan (HOOPP) and Abacus Data. Among seniors, 79% are very concerned about the effects of trade disputes.
"When Canadians are feeling even more uncertain about the future as they are now, pensions can offer more certainty about the future,” Abacus DataCEO David Coletto said in a media release. “Policy makers and employers should be taking a closer look at this now, more than ever."
These cross-border concerns are having a tangible effect on savings behavior. The findings reveal that 22% of Canadians have increased their savings because of geopolitical instability, while 18% have stopped saving altogether. Almost half of unretired Canadians (66%) expect to work during retirement to make ends meet, and 55% say they simply cannot save for retirement as they live paycheque to paycheque.
Homeownership remains central to retirement strategy. According to the data, 44% of homeowners plan to rely on selling their homes to fund retirement, while a third anticipate remortgaging for additional funds. However, 65% of unretired homeowners worry they won’t have their mortgages paid off in time to retire as planned. For those who do not yet own homes, 62% cite interest rates as a barrier to homeownership.
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Nearly four in 10 homeowners would consider downsizing if additional retirement income becomes necessary. Notably, 14% said they would use a reverse mortgage to access equity if their finances required it in retirement.
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