Home Breadcrumb caret Industry News Breadcrumb caret Industry 25% of Canadian retirees live with debt: survey All clients want a worry-free retirement, but some could find themselves facing financial challenges in their golden years. Read: How much retirement saving is enough? That’s because 25% of Canadian retirees are living with debt, finds a national survey from Sun Life Financial. In fact, some retirees still use credit as they did before retirement, […] By Staff | February 21, 2018 | Last updated on February 21, 2018 2 min read All clients want a worry-free retirement, but some could find themselves facing financial challenges in their golden years. Read: How much retirement saving is enough? That’s because 25% of Canadian retirees are living with debt, finds a national survey from Sun Life Financial. In fact, some retirees still use credit as they did before retirement, with 66% carrying debt from credit cards. That’s similar to the percentage of working Canadians with such debt (65%). On average, retired Canadians carry more than $11K in non-mortgage debt (compared to almost $19K for working Canadians). And 20% of retirees are making mortgage payments. Here are other areas where retirees owe money: car payments (26%); health expenses (7%); holiday expenses or vacation property (7%); and home renovations (6%). Dipping into RRSPs At the same time that retirees face lingering debt, almost one-quarter (24%) of working Canadians are dipping into retirement savings. Canadians pulled cash for the following reasons: needed expenses, such as healthcare and debt repayment (63%); home down payment through the First Time Home Buyers’ Plan (24%); and discretionary spending, such as vacations and car purchases (13%). Similar to the Sun Life survey, a BMO poll finds that reasons for dipping into RRSPs include purchasing a home (27%). But in that poll, fewer Canadians cited expenses: 23% said they used withdrawals to pay for living expenses, while 20% were using the funds to pay off debt—a total of 43%. Read: Why to abandon, not expand, the RRSP Home Buyers’ Plan For more details, read the survey results. About the survey: Sun Life Financial Canada’s survey is based on findings of an Ipsos poll conducted between Oct. 13 and Oct. 19, 2017. A sample of 2,900 Canadians, aged 20 to 80, was drawn from the Ipsos I-Say online panel. The data for Canadians surveyed were weighted to ensure that the sample’s regional, age and gender composition reflect those of the Canadian population. Also read: Learning to love your future self Learn how to help freelancers Staff The staff of Advisor.ca have been covering news for financial advisors since 1998. Save Stroke 1 Print Group 8 Share LI logo