Five key trends set to reshape how seniors are supporting their families
Canadians aged 55 and older are breaking away from traditional retirement norms, finding innovative ways to manage their finances, embrace new technologies, and strengthen intergenerational bonds. According to a new report from HomeEquity Bank and Ipsos, these trends will significantly impact younger generations, from Millennials to Gen Alpha, in the coming year.
Top five trends impacting 2025
- Living legacy gifts: Immediate support over inheritances
Older Canadians are opting to help their families financially now rather than waiting to leave inheritances. Over half of homeowners aged 55+ have provided significant financial gifts to their children or grandchildren, often exceeding $25,000. These “living legacy” contributions are typically used for education, weddings, or first homes.
- Skip-generation bonding
Multigenerational travel is on the rise, with grandparents planning trips to connect with younger family members. These “skip-gen” experiences foster deeper relationships while creating lasting memories. Leveraging reverse mortgage solutions, older Canadians are funding these trips without compromising financial stability. Since 2021, the use of such funds for travel has surged by 86%.
- AgeTech adoption
Canadians aged 55+ are increasingly turning to AgeTech solutions, such as wearable health monitors, smart home systems, and social robots, to enhance their independence. These technologies provide vital support for both older adults and their caregivers, improving connectivity, healthcare access, and safety.
- “House rich, cash poor” comfort with debt
As inflation persists, more homeowners aged 55+ are accessing their home equity to fund life goals and daily living expenses. The population of “house rich, cash poor” Canadians - those with substantial home equity but limited liquid assets - has grown by 66% since 2021, with 2.66 million individuals falling into this category. Reverse mortgages are increasingly used to address this financial imbalance.
- Mortgage brokers: Key to financial planning
With a record 1.2 million Canadian mortgages up for renewal in 2025, mortgage brokers will play a crucial role in helping older Canadians navigate rising interest rates. Brokers are expected to recommend reverse mortgages to those on fixed incomes as a viable alternative to traditional mortgage renewals.
“Despite financial headwinds, Canadians 55+ are taking an active role in creating stability and purpose in their lives by finding new ways to connect with family, and continuing to pursue independence, dignity and empowerment in 2025,” said Katherine Dudtschak, president and CEO of HomeEquity Bank. “Following a period of extended inflation and increased monthly expenses, we see a desire amongst Canadian homeowners 55+ to explore new ways to access the savings in their homes to achieve their goals.”
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