(NC) -- When workplace income stops and retirement begins, every expense in our lifestyle risks the chopping block: Can I afford it or should I do without it?

These assessments big and small are commonplace, further underscored by a Statistics Canada report showing that seniors rely on government sources for 40% of their income. Cutting way back, of course, is not exactly the way most of us envisioned the freedom of retirement, especially now that the golden years frequently stretch into happy-and-healthy decades.

“Often, it's just a few more dollars every month that would make all the difference, especially when unexpected costs arise,” says Arthur Krzycki, a director with HomEquity Bank. “So for those who own a house – and want to stay in their house – receiving some reliable added income is exactly the purpose of the CHIP Home Income Plan. For example, $500 per month can go a long way to maintain the home with repair costs, property taxes, and insurance premiums.”

Here's how CHIP works:

• Homeowners aged 55 and over can convert up to 50 per cent of their home equity into tax-free cash.

• Unlike other loans on the market, homeowners are not required to service the interest, or repay the principal until they choose to move or sell.

• By guarantee, a homeowner will never have to repay more than the fair market value of the house at the time of sale.

You don't have to take all the money at once. Homeowners are given the option to take a lump sum, or they can schedule monthly advances to enhance their cash flow on a regular basis. Or they can do both.

A reverse mortgage like CHIP can provide peace-of-mind relief to make your savings stretch a lot more.

Ask a financial advisor or a mortgage broker for details – and additional information is also available online at www.chip.ca.