Debt is interfering not only with Canadians’ retirement savings but also more immediate life plans such as buying a home, getting married and having children, a poll from the Angus Reid Institute says.
Though almost nine in 10 Canadians agree with the statement, “It’s stupid to go into debt if you don’t need to,” more than three-quarters carry debt, the poll found.
Only 16% said their debt is “difficult to manage,” but the survey found that it’s interfering with various financial and life goals.
One in three (32%) have put off retirement saving because of their debt, the poll said, and only 12% said they have an amount in the bank that meets or exceeds goals.
The poll found debt is delaying other life plans including buying a home (18%), getting married (8%), having children (7%) and moving out of parents’ homes (5%).
Despite few young Canadians reporting significant savings, the poll found millennials expect to retire earlier and live better in retirement than older generations do.
In the third quarter, Canadians’ household credit market debt as a proportion of disposable income was 177.5%, Statistics Canada reported in December, meaning Canadians owed nearly $1.78 for every dollar of household disposable income.
The Angus Reid Institute poll was conducted in partnership with The Globe and Mail in September 2018 among a representative randomized sample of 1,500 Canadian adults who are members of the Angus Reid Forum.
Read more survey results here.