Nov 2, 2026
Many Canadians nearing retirement have a rough idea of whether their savings will last. Far fewer have asked whether their house will.
A new national index looked at how ready Canadians are to live longer lives, and our financial readiness only managed a 66 out of 100. Housing — defined as having a safe, accessible home — scored just 53.
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That gap matters. For many retirees, the family home represents both their primary financial asset and their preferred primary residence throughout retirement. But a flight of stairs, a narrow doorway or a bathroom on the wrong floor can force a costly renovation or a rushed move at the worst possible time. Planning now while you have steady income and choices beats reacting to a sudden injury or illness later.
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What did the study find about Canadians and their homes?
The numbers come from the inaugural Longevity Preparedness Index (LPI). It came out of a partnership between Toronto-based financial company Manulife and the MIT AgeLab, a research group that looks into how we age. The index scores readiness across eight areas of life on a scale of 0 to 100.
Canadians averaged 60 overall. Participants scored highest in the community (75) and social connection (69) categories. They scored lowest on care (40), home (53) and health (55).
The care score is directly linked to housing. Only 11% of Canadians name future care needs as a top priority today, yet 26% expect those needs to matter to their well-being later in life. Where you live dictates how care is delivered and who provides it.
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Why doesn’t a healthy retirement fund guarantee a retirement-ready home?
Financial readiness and home readiness are not the same thing. Joseph Coughlin, founder and director of the MIT AgeLab, told Investment Executive that homeowners often assume they can age in place. They plan to stay without asking if they can still manage the stairs or fit a wheelchair through the doors. You may have money in the bank and good health, he noted, “but have you thought about who would provide care?”
Then there’s the liquidity issue: home equity isn’t cash in hand. Home equity can pay for retrofits or care, but unlocking it usually means borrowing against the house or selling it. Those decisions are tough to make in a hurry. Major renovations also take time to plan, permit and complete.
That’s why Coughlin suggests preparing five to 10 years before leaving the workforce. It gives you room to weigh future living arrangements while you still have earning power.
Which parts of your home should you check before you retire?
Walk through your home as if you were recovering from a hip replacement or using a walker. Things to ask yourself:
- Is there a bedroom and full bathroom on the main floor
- Is the front entrance step-free, or could a ramp be added
- Are doorways and hallways wide enough for a walker or wheelchair
- Does the bathroom fit grab bars and a step-free shower
- Are laundry and other daily tasks on the same level
- Could you handle snow removal and yard care at 85, or comfortably afford to hire it out
If several answers are no, compare the cost of retrofitting with the cost of moving to a home that already fits. Before you jump to conclusions about which way is cheaper, get a few real quotes from licensed contractors. Location matters too: closeness to transit, health care and family can matter as much as the floor plan.
Can tax credits help pay for accessibility upgrades?
In some instances, yes. The CRA offers the home accessibility tax credit (HATC). It lets you claim up to $20,000 a year in eligible renovation expenses.
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To qualify, you must be 65+ by year-end or eligible for the disability tax credit (DTC). Certain relatives who live with or support a qualifying person can also claim.
The work conducted must be permanent. It also has to improve access or mobility, or reduce the risk of harm. Routine repairs, appliances and financing costs are not eligible.
The HATC is a non-refundable credit calculated using the lowest federal tax rate. According to H&R Block Canada, that rate is 14% for 2026, so a full $20,000 claim could cut federal tax by up to $2,800. If an expense also qualifies as medical, the CRA allows you to claim both credits. Keep all of your invoices and receipts.
Family members providing support may also qualify for the Canada caregiver credit, and some provinces run their own programs.
What to do now
- Do a room-by-room audit using the questions above
- Get quotes for your one or two biggest fixes, such as a main-floor bathroom or a ramp
- Time renovations for years when you or a qualifying relative owes enough tax to use the non-refundable credit
- Review your powers of attorney for property and personal care, and document your care wishes in writing
- Raise housing and care with your financial advisor
That last step may pay off. The LPI found that working with a financial professional raised readiness scores from 57 to 63. The score rose to 66 when the advisor discussed longevity topics.
Scrutinize your retirement home as carefully as the portfolio that funds it. As Coughlin said in Manulife’s release, “Canadians are not unprepared because they are unwilling to plan.”
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Amy Tokic is an SEO content editor for Money.ca. She holds a B.A. in Communications from the University of Windsor. Amy is an award-winning author and has been writing professionally for 15 years, publishing articles in the lifestyle and health sectors.
