Canadians expect to be debt-free by the time they are 56 years old although some Canadians see themselves carrying debt well into their sixties, a CIBC poll finds.
In addition, 29% say they have no debt while 13% say they will never be debt-free.
“While Canadians expect to be debt free by age 56 on average, not everyone will hit that goal, which means a significant number of Canadians will still be carrying debt during retirement,” says Christina Kramer, executive vice-president, retail and business banking with CIBC.
More than half of Canadians aged 65-plus say they still carry some form of debt today, with credit card debt and lines of credit as the most common types. This group also said they didn’t expect to have their debts paid off until they are 70 years old on average.
Younger Canadians are more optimistic about paying off debt. Those aged 25 to 34, on average, expect to be debt free by age 47.
However, a closer look at those currently carrying debt suggests this may be an optimistic goal, as more than 68% of Canadians 45 and over still carry debt, including 31% who still carry a mortgage.
Of all Canadians with debt, 32% say they have made sacrifices or cut spending to better manage their debt this year and 25% say they have made at least one lump sum payment towards their debt on top of regular payments.
This article originally appeared on benefitscanada.com.