Reducing Debt before Retiring Makes For an More Enjoyable Retirement
A poll recently conducted by CIBC showed that in Canada, nearly 60 percent of retirees carried some type of debt. Granted, it is less than younger folks that were still working, but these older Canadians are not as likely to try and pay of that debt sooner than later. That means they will carry that debt for longer periods, incur more interest fees and have less ready cash on hand.
The actual figure for retired Canadians with debt was 59 percent. Compare this with the 76 percent of younger, non-retired Canadians. Of the retired group, 27 percent have made an extra or lump some payment on that debt during the past year. The non-retired group had an average of 42 percent. Retired Canadians averaged a 1.65 debt ratio, while non-retired Canadians had a debt ratio of 2.64 percent. The debt ratio figures included mortgages, credit cards, loans and lines of credit.
It is harder to pay down debt faster when retired. Often times retirees have a fixed income and that...