Retirement Debt

Canadians of all ages are awash in credit card debt, often paying exorbitant interest rates. Unfortunately, debt is becoming embedded in our society. With the financial squeeze and increased unemployment rates, it’s more difficult than ever for most people to pay off their debts and save for retirement. Retirement can and should be an enjoyable and relaxing time of life, but for Canada’s aging population, it can bring about financial difficulties, stress and anxiety. Many seniors are forced to live on significantly reduced incomes in their later years, making everyday living expenses and monthly bills more difficult to afford.

Canadian Household Debt GrowthThere has been much concern expressed about the increasing proportion of older Canadians who are approaching retirement with significant debt, including mortgage debt on owner-occupied housing. The reality is that seniors generally have lower than average incomes, with very little money left over each month to put towards debt repayment.

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About Syed Hussain

Syed Hussain, Ph.D: Banker, Bankruptcy Analyst, Forensic Accounting & Fraud Examiner, Cyber-Crime & Anti-Money Laundering Advisor, Internal Auditor & Counterterrorism Strategist . As an avid reader and traveler, the former air force pilot, likes to connect with like minded people and engage in intelligent conversations. He enjoys music, film and politics, as well as visiting museums, art galleries and air shows. Syed enjoys horse back riding and swimming. Besides English, he speaks other languages. At the end of the day, he can be found relaxing with a good beer and a fine meal.

2 responses to “Retirement Debt”

  1. ricodilello says :

    I agree that debt is a big problem but personal tax rates are too high in Canada. There isn’t any money left over to save for retirement. Canadians are not risk takers since they are still investing in mutual funds with high fees.

    • Syed Hussain says :

      You are correct. In retirement, the major sources of retirement income such as employer pensions, RSP/RIF income, CPP, OAS and interest income are all taxed at your marginal tax rate with no preferential tax treatment. It may be necessary to discuss with your investment and tax advisor as to which of the tax reducing strategies are suitable for you.

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