Wanted for a Successful Retirement: A Debt-Freedom Plan

Paying down debt more important than saving for retirement for many homeowners Debt-freedom expectations change as people age Many Canadian homeowners will continue to work until they achieve debt freedom before retiring Manulife Bank surveyed 2,003 Canadians Audio clips and infographic attached

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WATERLOO, ON, May 14, 2012 /CNW/ - Nearly nine in 10 Canadian homeowners (87%) indicate that "being debt-free" is very important to their definition of a successful retirement according to a recent debt and retirement survey conducted by Manulife Bank of Canada. This is second only to "having good health" (94%) and slightly higher than "having sufficient income to maintain my current lifestyle" (85%).

This is the first time that Manulife Bank has focused on surveying Canadians about debt in the context of retirement planning. The survey found that half of Canadians - more women (54%) than men (46%) - would find it extremely stressful to reach retirement age with debt still outstanding.

Interestingly, many non-financial factors such as "living near family" (62%), "keeping busy with a hobby or volunteer work" (64%), and "having a broad group of friends" (43%) were deemed much less important to a successful retirement than being debt-free.

"The results from this survey strongly support the fact that, for a successful retirement, people need to pay close attention to not just their retirement savings, but debt repayment as well," stated Doug Conick, President and CEO of Manulife Bank of Canada.

Similarities and differences across Canada

While Canadians are relatively consistent in their views on debt, some regional differences stood out:

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.

Link:
Wanted for a Successful Retirement: A Debt-Freedom Plan