For BC, focus on debt-freedom as a condition for retirement is in line with the rest of Canada About one third of BC homeowners seek some kind of professional advice to manage debt and day-to-day cash flow Manulife Bank surveyed 2,003 Canadians Audio clip and infographic attached

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Retiring from Debt in British Columbia (CNW Group/Manulife Financial Corporation)

WATERLOO, ON, May 14, 2012 /CNW/ - Eighty-five per cent of British Columbian homeowners indicate "being debt-free" is very important to their definition of a successful retirement according to a recent debt survey by Manulife Bank of Canada . It ranks second only to "good health" (92%) and slightly higher than "sufficient retirement income to maintain my current lifestyle" (83%).

When asked to imagine that they had reached their planned retirement age and still had debt outstanding, 52% indicated that they would find this scenario extremely stressful. This aligns closely with the national average, where the survey found that fully half of Canadians - more women (54%) than men (46%) - would find it stressful to reach retirement age with debt not yet paid off.

BC homeowners judge many non-financial factors such as "living near family" (60%), "keeping busy with a hobby or volunteer work" (66%), and "have a broad group of friends" (47%) much less important to a successful retirement than being debt-free.

"Like most Canadians, BC homeowners understand that a stress-free retirement relies not only on sufficient savings, but also on being debt-free," noted Stuart Kirk , a Retirement Planning Specialist with Precision Wealth Management in Parksville, BC. "Understanding the importance of paying off debt is the first step to a successful retirement. The next step is putting a plan in place to help get there. And that's where a financial advisor can help."

Across Canada , debt-freedom expectations change as people get older

Manulife Bank's debt and retirement survey found that three in four Canadian homeowners consider debt-freedom to be among their top financial goals - a finding that is relatively consistent with Manulife Bank's past consumer debt studies. However, their expectation about when they will actually achieve debt-freedom appears to be largely dependent upon their age, a finding that is consistent across the country.

Most Canadian homeowners in their 30s (73%) who reported having debt expect to be debt-free before they turn 60. That number decreases to two-thirds for homeowners in their 40s. Just one third of homeowners in their 50s expect to be debt-free before they turn 60, with one in five indicating they either don't know when they'll be debt-free (14%) or don't expect to ever be debt-free (7%).

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In British Columbia, Debt-freedom is a High Priority for those Looking to Retire