Is Debt Freedom a Part of Your Vision for Retirement?

What comes to mind when you think about a “successful retirement”? Travel? Golf? Time with family? 

If you’re like most Canadians, at least part of that vision involves being debt-free. A recent survey by Manulife Bank[1] found that nearly nine in 10 homeowners list being debt-free as very important to their vision for a successful retirement. This was second only to “good health” and about the same as “having sufficient retirement income”. 

Unfortunately, the same survey indicates that many are struggling to get out of debt.  For example, just over half of survey respondents had less debt than a year ago. Even among homeowners in their 50’s, just 15% have successfully paid off all of their debt. For many, this can be an increasing source of stress as retirement approaches The survey found that half of homeowners considered the idea of retiring with debt to be extremely stressful.

As most of you already know, getting out of debt can be a challenge. The good news is, it’s not impossible and you’re not alone. In today’s lucrative financial world there are many products available that’s sole purpose is to provide a debt-free environment much quicker than traditional methods. It is ideal to include a discussion on this topic when creating/reviewing your retirement plan.  

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[1] The Manulife Bank of Canada poll surveyed 2,003 Canadian homeowners between ages 30 to 59 with a household income of more than $50,000. It was conducted online by Research House between March 5 and March 16, 2012. Full survey results are available at manulifebank.ca/debtresearch.