Over a quarter of men (27%) in Canada would consider dipping into their retirement funds to cope with tough times as a result of unforeseen life events, compared to just under a quarter of women (23%), according to a new study from global banking group HSBC.
The survey of over 15,000 consumers in 15 countries found a significant appetite among savers to dip into retirement savings when faced with financial hardship. However, it also found that just four in 10 Canadians (40%) are regular savers, leaving many non-savers with little to no option but to resort to more extreme measures.
Moving to a smaller house was among the alternative coping mechanisms explored by the report, revealing, in this case, similarity between genders. The study found that nearly the same percentages of men (19%) and women (21%) would consider downsizing to deal with financial difficulty.
The study showed the financial strain that home ownership is placing on today’s savers, with over one quarter (27%) saying that buying a home or paying a mortgage has had a significant impact on their ability to save for retirement. An equal amount (27%) said that becoming unemployed or getting into debt or severe financial hardship would present the same savings challenge.
Bricks and mortar is just one of the sacrifices people would consider making if their financial situation demanded it; 33% of respondents would tap into other savings and investments and 17% would sell their valuables. However, others would consider borrowing to avoid parting with their assets; 18% would borrow money and 14% would ask friends and family for help.
Betty Miao, executive vice President, retail ranking and wealth management, HSBC Bank Canada, in Vancouver said: “Homes can be an emotive investment and people’s unwillingness to unlock their equity during times of hardship is understandable. But unless people plan ahead, they may be faced with no alternative.”