Trapped

They were married in ’72.

“We were kinda hippies,” Marie says. “I wore fresh daisies in my hair.”

At 23, the world’s your oyster. She and Jim shared the trip together – 53 years, now. Along the way, two kids, two careers, two apartments, then three houses in as many cities. She taught for a while (French). He was a railway guy. They retired eight years ago and figured the next two decades would be smooth sailing, living on private and public pension money.

But, well, not exactly. Marie’s earning years were chopped up with mom duties, and Jim’s pension turned out to be less than expected. But they did end up living in a house they bought in 1998 for $375,000 and paid off in 2010.

“I find this hard to believe,” he says, “but the real estate guy tells me we could get, maybe, two million for it.” He paused. “Of course, we’re not selling.”

So typical. And self-defeating.

Canadian facts are incomplete, but we can probably assume something similar to this…

The National Association of Realtors (US) released a report a few days ago showing Boomers say phooey to downsizing or selling to finance their retirements. The typical Boomer in their sixties unloading a substantial house in the last couple of years bought another the same size. Older wrinklies in the 70s did tend to downsize – but by buying a place on average just 100 square feet smaller. Nothingburger. Boomers like big.

The report also found this: “Among buyers ages 61 to 70, only 11% said the primary reason (for selling and moving) was for a smaller home. Among those 81 to 100, the share rose only to 18%.”

Are retiring, house-rich but pension-starved little beavers any more sensible?

Recent surveys show a split in Canada. A 2025 poll found 46% of those nearing retirement age say they’ll be downsizing shortly after leaving work. But an equal number state they have no intention whatsoever of selling, moving or having anything to do with a realtor. Surveys also tell us 70% to 90% of people over fifty want to “age in place” until the finish line.

The reasons to stay rooted in a house are obvious.

For starters, there are not a lot of suitable, smaller, affordable places to buy where people want to live – close to shopping, services and a liquor store. Second, you have to sell an existing home to get into a downsized one, and the housing market sucks. Showings, open houses, displacements and strangers in your bathroom – it’s all disturbing.

Selling and moving costs a bundle, too. By the time you factor in real estate commission, taxes, legals and movers a serious chunk of the proceeds have vanished – making buying again even more of a challenge.

Finally, moving means being uprooted. You leave routine, friends and sometimes family behind. You might need to find another doctor or dentist, meet new neighbours and risk not having enough room for all your stuff. Change is hard. So you can count on a lot of people talking about plans to downsize in retirement who never actually do so. They’re emotionally trapped.

But wait. Not cashing out of your old, inappropriate real estate when working days are done could be a mistake, condemning many to years of low income and diminished joy.

People like Jim and Marie have concentrated most of their net worth in a single asset. Canadians also amassed historic levels of personal debt. These days two-thirds of people with mortgages worry they won’t have them paid off by the time they retire – a big jump from the 45% who vexed over this just three years ago.

And our savings are pathetic. A fifth of homeowners have less than $5,000. Just 18% have $200,000 or more. Seven in ten have no pension. Meanwhile CPP and OAS were never intended to fully finance a retirement – just to be supplemental to personal savings and pension income.

The average after-tax household monthly income for retired Canadians is $6,100. For singles, it’s $2,800. No wonder  almost a third of the oldies think seriously about taking a reverse mortgage – sucking out house equity to finance their lives despite the massive cost involved and the accelerating debt that results.

Of course, there is another way. Sell. Rent. Stay in the same hood or city. Harvest your unique tax-free real estate gains. Invest the money in an income-generating B&D portfolio. Get a monthly paycheque that’s not counted as taxable income. Live a good one. Travel and shut the door without homeownership worries. Understand that the goal of life is not stuff, but making the most of that which you can never replace – time.

What could Jim and Marie expect from a portfolio of two mill? Probably about nine grand a month, even after paying someone to manage the assets for them. Low taxes, too. And that would more than double their existing income, throwing off enough to lease a lux condo with zero maintenance fees and a heated parking spot.

It’s all about choices. Staying married for 53 years was a good one. Staying trapped in the house, not so much.

About the picture: “Hi Garth, I am a long time reader and previous dog photo supplier,” writes Paul. “Today I am sending a shot of this handsome dude who spends his time in Banff. He and his buds hand out along the shores of Lake Minnewanka. They do not worry about real estate or financial markets. They are more focused on grabbing a bite and avoiding the cougars and bears. Thanks for all of your enlightening posts over the years.”

To be in touch or send a picture of your beast, email to ‘garth@garth.ca’.

Source: https://www.greaterfool.ca/2026/04/26/trapped-2/