Want to make sure your debts are retired before you are? These tips will help you pay off your debts while you save for retirement.
Will you be able to retire without loads of debt? If you’re like 25% of the retired baby boomers in a recent survey by Sun Life Financial, you could have stopped working and still be struggling with a mortgage and unpaid credit-card debt:
- 1 in four (25%) of retirees are living with debt.
- 1 in five (20%) of retirees are still making mortgage payments.
According to the survey, many retirees are carrying credit-card debt from month to month. They’re making car payments, they owe money for health expenses and they’re in debt for holiday expenses or vacation property. And while retirees face lingering debt, working Canadians are compromising their retirement savings.
- Almost one-quarter (24%) of working Canadians are dipping into their retirement savings.
- 63% of those Canadians pulled cash out of their RRSPs because they needed the money – to cover health expenses or pay off debts, for example.