Four in 10 Canadians retiring with debt

Yet another survey indicates that many seniors are financially vulnerable after retirement. (You can read the complete story on the CTV News web site by clicking on the title above.)
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A new survey suggests many Canadians are entering their golden years in the red.

The survey from RBC finds that four in 10 Canadians over the age of 50 who have assets of at least $100,000 have retired with some form of debt.

As well, one-quarter have entered retirement still carrying a mortgage on their primary residence.

The survey, which RBC calls its first annual Retirement Myths and Realities poll, was conducted by Ipsos Reid to examine Canadians' expectations and experiences in retirement.

It also found that 17 per cent of retirees had consumer debt or credit card debt. In total 7 per cent had other kinds or debt or were co-signers on loans, while 5 per cent had mortgages on investment properties or cottages.

The survey found that 70 per cent of retirees feel it is still important to be able to save part of their income, yet more than one-quarter have acquired new credit products since they retired.
The survey found that many retirees are worried about how their savings will hold out over their retirement. Inflation and taxes are among the top concerns, with more than one-third (35 per cent) worried that inflation will negatively impact their retirement income, compared to 43 per cent of pre-retirees.

As well, 62 per cent of retirees worry about taxes on their income, with two-thirds believing the percentage of their income required for taxes will rise in the next 10 years.

"It's not uncommon to be concerned about maintaining a sustainable level of income in retirement, but costs you never counted on may also arise," said Davies. "For example, our poll found that almost one-in-five retirees spend over $1,000 annually on prescription drugs."

The poll, conducted from March 10-19, 2010, surveyed online 2,143 adults aged 50 and over with household assets of at least $100,000. About half the group said they were retired.