Not only do most people in or near retirement plan to keep their current home, they also don't plan on tapping the large equity stake they have in their home.

That could be tough to pull off for the vast majority who are not avid savers.

However, a saving grace for retirees is that most of them have already paid off their mortgage and lots of equity is there if they need it.

A recent Harris Interactive poll conducted for financial services provider, Des Moines, IA-based Principal Finance Group, found older Americans feel relatively financially secure about their homes, but stay awake at night worrying about other financial matters.

With the current housing market mayhem adding to retirement time tension most of those who've already retired see home ownership as a financial cushion -- 73 percent say they'll keep their current home rather than sell or even downsize, according to Principal's Financial Well-Being Index.

That could actually have a positive effect on today's housing market if significantly fewer homes come to a market awash in unsold inventories.

The index also shows that only 21 percent of those still working, but just five years from retirement, also plan to keep their current home.

Both retirees (78 percent) and those on the brink of retirement (76 percent) aren't considering taking out a reverse mortgage or selling their home to help fund retirement.

That might work for retirees, 60 percent of whom have their homes completely paid off. Older workers however, may not be so fortunate. The survey says only 65 percent of those still working own their home and 36 percent of that percentage has a smaller than 20 percent equity stake.

Also some who rely largely upon their home for financial shelter could find themselves unprotected.

Nearly half the workers (45 percent) and most retirees (61 percent) have not received any financial planning assistance. With such planning they could be better savers as a way to bolster their financial well-being.

The survey said while 42 percent of workers think they should save 11 percent or more of their pretax salary for retirement, only a minority (11 percent) actually do.

"Those with inadequate savings during retirement might be forced to consider home equity as a source of retirement income ... it is crucial that retirees and workers develop and implement an adequate retirement savings plan that will allow them to maintain their lifestyles throughout retirement," said Dan Houston, a vice president at Principal.

More than two thirds of workers (67 percent) and more than half of retirees (52 percent) said they are concerned about their long term financial future, but housing wasn't mentioned when they were asked what concerns "keep them awake at night."

For those still working, 39 percent said concerns about being able to enjoy the same quality of life during retirement makes for sleepless nights. So does the ability to afford good medical care (39 percent); outliving savings (32 percent) and inflation that reduces their purchasing power (28 percent) were also nightmare makers.

As for retirees, 29 percent said night sweats come from worrying about the ability to afford good medical care; followed by outliving savings (24 percent), and the ability to pay for basic necessities (21 percent).

Published: September 19, 2007

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A journalist for 35-years, Broderick Perkins parlayed an old-school daily newspaper career into a digital news service offering editorial content and consulting services. Perkins' San Jose, CA-based DeadlineNews Group includes the flagship news site, DeadlineNews.Com, offering real estate, personal finance and consumer journalism, and a backshop, the Deadline Newsroom.