Debt and Retirement
Retirement usually coincides with a drop in income and an increased reliance on savings. In these circumstances, having to manage debt can increase financial insecurity, both for retirees and those planning their retirement. Recent Statistics Canada data confirm that among those age 55 and over, one-third of the retired and two-thirds of the not-yet-retired report having some form of debt.11
Consequently, Sun Life Financial’s 2015 Canadian Unretirement Index Report determines that only 27% of Canadians between 30 and 65 years of age expect to be retired at 66 (compared to 51% in 2008).12 Among those who responded that they expect to be working at 66, 59% said it was because they needed to while 41% said it was because they wanted to.
11 Retiring with debt by Katherine Marshall (April 27, 2011). Product component No. 75-001-X, Statistics Canada catalogue.
This document has been updated on August 31st, 2018 and reflects the state of the Law, including draft amendments, at that date.