Over half of baby boomers (57%) would rather work longer so they can maintain their current lifestyles as they enter retirement, finds a CIBC poll.
Further, 24% plan to carry debt into retirement. Of those, 80% will carry debt throughout their entire retirement. This suggests they have no immediate plans to pay it off, and may be too comfortable with today’s low interest rates, says CIBC.
“Retiring with debt creates a drag on your retirement income, as monthly repayments will reduce cash flow and can actually limit your financial flexibility once you retire,” says Christina Kramer, executive vice president, retail distribution and channel strategy, CIBC.
She adds, “While some Canadians may feel they can incorporate monthly debt payments into their retirement, the reality is that repaying debt before retirement remains an integral component of maximizing cash flow.”
Additional poll findings include:
- When given the option to retire earlier but give up their current lifestyles and live more modestly, only 25% of Canadians between ages 50 and 59 would take the offer;
- Those in Manitoba/Saskatchewan (67%) would rather work longer and live better, while those in Quebec (32%) would rather take an early retirement with a more modest lifestyle;
- 45% of baby boomers have saved less than $100,000 for retirement.
Here are some articles to help you provide baby boomers with retirement saving advice.