Pattie Lovett-Reid Chief Financial Commentator

In recognition of Fraud Prevention Month, I recently joined HomeEquity Bank’s Senior Vice President and Chief Marketing Officer, Vivianne Gauci, for an Instagram Live to discuss the common scams affecting Canadians 55 and over and provide tips to protect yourself and your loved ones. Here’s what you may have missed! Canadians are increasingly the target of fraudsters and scammers. The Canadian Anti-Fraud Center (CAFC) reported a record-breaking $531 million lost to fraud in 2022. Even more worrisome? According to IPSOS research commissioned by HomeEquity Bank in 2022, over half of Canadians 55 and over report being targeted by scammers, with a staggering 36% report having fallen victim to a scam.

Let’s face it, even under the best of circumstances it can be difficult to entirely fund your retirement, especially when it could represent a third of your life. Add high inflation, market volatility and higher interest rates in today’s economic environment, and it is even more important to leave no stone unturned and explore all of your funding options. This includes your savings, money tucked away in a TFSA or investment portfolio, some have been diligent and consistently contributed to their RRSPs, others have had the luxury of a company pension plan, and almost all Canadians will turn to government programs to support their retirement lifestyle. However, for many, even if they tried to save via some, or all, of these products, it still may not be enough.

At the start of the new year, I always have great intentions for the year ahead and that includes setting financial goals. This is especially important for 2023, due to the challenges of the past year. Debt levels have climbed to near all-time highs, rates have continued to inch higher to combat inflation, and the housing market remains a wildcard. Households are having to make tough choices as spending has been reduced and there is a feeling of treading water financially speaking. Given so many households are living so close to the margin, it would be unreasonable and unrealistic of me to simply say “set some goals and go out there and achieve them.” Therefore, in 2023 I’m shifting gears from financial resolutions to financial resiliency.

Not everyone enjoys managing their money and, like me in the kitchen, are making mistakes that could prove costly. You can’t change the past, but you could learn from these mistakes and refocus your efforts going forward. November is Financial Literacy Month and here are the top 10 financial lessons I’ve learned in life: 1) Sitting on cash for too long. In today’s environment, having cash on hand is a good thing and taking a cautious tone when it comes to investing is prudent. However, your return on this investment, even in a rising interest rate environment, is minimal when factoring in taxes and inflation.

It has been tough to watch your portfolio crumble with stocks and bonds all headed lower, inflation remaining stubbornly high, and central banks all around the globe raising interest rates. And while you have zero control over how the markets will perform, nor can you single handily beat down inflation. Even if you think the Bank of Canada may overshoot on interest rate increases. Once again, that is out of your control.

Despite the current state of the housing market – rising mortgage rates and low supply – the dream of homeownership is still very much alive for Gen Zs and Millennials. 68% of those between the ages of 26 to 41 say buying a house is an important life goal. The question is, when will they be able to do it? For the past 6 months, home sales have edged lower according to the Canadian Real Estate Association (CREA), Given all the potential variables challenging the current environment, the harsh reality remains that, unless they have a substantial amount of money saved or can withdraw from the Bank of Mom and Dad, it is going to be near impossible for a young first-time buyer to buy a home.

On October 1st, 2021, HomeEquity Bank called on Canadians to retire the word “senior” which is a big reason why I joined the company. Calling someone a “senior” can create a limiting belief for some that has negative connotations that hold them back from living their life to the fullest. I dislike the word senior as much as the ‘anti’ in anti-aging. I feel senior is seen in a negative way, as old, slow, fragile etc. rather than wise, knowledgeable. If you are 55+ you have a lot of life ahead of you. You also have the opportunity to embrace it without a label associated with it and live your best life to the fullest.

There is so much as grandparents we want to pass along to our grandchildren. To be honest, we would love to give our grandchildren the world but clearly, we can’t and clearly, we shouldn’t, even if we could. However, what we can do is try to open the world of possibilities for them by helping to fund a post-secondary education. But it isn’t cheap. Based on data provided by Statistics Canada, the average cost of a four-year university degree starting in 2022 is $96,004 for students in residence or $48,074 for students opting to live at home. The escalating costs led us to save early and contribute often not only for our children but our grandchildren, as well.

If there is a product in the financial services arena that people seem to universally dislike, it appears to be the reverse mortgage. I seriously don’t know why. What I do know, is that given the aging population, our love affair with real estate, the high levels of debt and the need to fund retirements, this product may be really hitting its stride. If you are over the age of 55 and you need or want access to capital, a CHIP Reverse Mortgage might be the answer. Unlike traditional mortgages there are no monthly mortgage payments, you can spend your money from your home as you like and it is tax-free. Repayment is only required if you move or sell and it should be noted you retain full ownership of your home.