Are your retired clients carrying debt?

More than half (59%) of retired Canadians say they’re carrying debt, with 19% saying they’ve piled on more over the last year, finds a CIBC poll.

Across all age groups in Canada, 71% say they’re struggling to pay off debt. It’s crucial to note, however, that paying down debt becomes more difficult after retirement since people transition to a fixed income. That means the percentage of retirees with debt need to drop drastically.

Read: What happens to debt when you die?

This is especially the case for the 37% who are juggling two or more payments a month. Among retired Canadians with debt:

39% are carrying debt on their credit cards
30% have debt on their line of credits
16% are still paying off their mortgages
14% have loans

“With today’s low interest rates, there’s an opportunity for retired Canadians to review their monthly cash flow and make progress in paying down their debt,” says Christina Kramer, executive vice president of Retail Distribution and Channel Strategy at CIBC.

She adds clients need help when consolidating their debt at a lower interest rates or making slightly higher regular payments.

Read:

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