Retiring with debt?

Almost half of Canadian Baby Boomers will be making mortgage payments after they retire.



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Whatever retirement plans Canada’s boomers have made, paying down debt doesn’t seem to be at the top of the list.

A CIBC/Harris-Decima poll reveals that 46 per cent of boomers are still working to pay off their mortgage, while 75 per cent still hold some form of debt. This, despite an earlier poll in which boomers identified planning for their retirement as their top financial priority for the year.

Surprisingly, the lack of debt reduction has not resulted in increased savings. According to a recent CIBC poll, almost 30 per cent of boomers felt they were doing a poor job of building their savings so far in 2011. This is likely due to the fact that among boomers with debt, only 21 per cent have spoken with an adviser sometime in the last year about strategies to reduce their debt faster.

4 comments on “Retiring with debt?

  1. Yeah, I know a married pair of boomers who lived the good life on borrowed money, did not save and now that neither are working, have been forced to put their house(still a large mortgage on it) for sale and will be looking to buy a much cheaper house. I warned them 10 years ago but they dismissed me as a wet blanket penny pincher. I have no mortgage on my house and when they asked me for a loan, of course I said no(who would be foolish enough to lend money to poor money managers?). They are not talking to me now.


    • There is a reason people borrow from friends…..Chances are you would never get it back anyways.The quickest way to lose a friend is to lend them money.


  2. @Mark
    So true and as Shakespeare had one of his characters say
    "Neither a borrower nor a lender be;
    For loan oft loses both itself and friend"

    In my case, I still lost a friend when I said no but I don't regret it as he is showed his true colours and showed he was not a true friend by his ungracious reaction.


  3. Tax liabilities and associated penalty and interest are a huge problem. Canadian taxpayers can apply for relief from penalties and interest under the Taxpayer Relief Provisions of the Income Tax Act Section 220(3.1).


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