Survey: Many Canadians retire with debt
As people advance in years, the hope for most is that they retire in good financial standing. But a recent report has found that a significant portion of Canadians enter retirement owing creditors money.
According to Statistics Canada, approximately one in three retired individuals who are at least 55 years old are several thousand dollars in debt, the median number being $19,000.
Among all retired people with consumer debt, as many as 32 percent owe between $5,000 and $24,999, with approximately 25 percent owing less than $5,000.
The study also looked into how certain factors affect the likelihood of carrying debt. Interestingly, it found that people with higher education levels and household incomes were more likely to owe money.
Statistics Canada based their findings on data from the 2009 Canadian Financial Capability Survey.
The findings have implications for people who live in retirement communities and need home insurance. Instead of sticking with one insurer, they may need to shop around to find a plan that offers better rates.