March 22, 2022
By Anne Levy-Ward
Read time: 5 minutes
Do you think you need a paid-for home for financial success? And especially for a financially successful retirement? It makes sense why you might. In Canada, we’re taught that home ownership is the ultimate goal. “Renting is often an indicator of immaturity or a lack of financial stability,” writes personal finance writer Sarah Milton in the Retire Happy blog. “Buying a first home has become a rite of passage into adulthood.”
And saving for retirement is another of those responsible, adult-type things to do. For a reasonably comfortable post-career life, most of us will need to augment our government pensions.
There’s no doubt that paying off a mortgage makes it easier to save for retirement. It frees up money to invest, gives you equity, and reduces your living expenses in retirement. But what if you don’t own a house? (Or can’t because of the rising costs of real estate in Canada). Can you still save? Or will your retirement hinge on winning the lottery?
The answer is yes, you can still save.