Baby boomers burdened by mortgage and unpaid
credit
TORONTO, Feb. 21, 2018 /CNW/ - A worry-free retirement may
be a thing of the past as Canadians struggle to manage debt. From
living with a mortgage to unpaid credit cards, retirees can find
themselves facing financial challenges in their golden years.The
Sun Life Financial Barometer, a new national survey, found that
one-in-four (25%) retirees are facing such challenges and living
with debt.
Baby boomers are no stranger to today's increased financial
demand; in fact, one-in-five (20%) retirees are still making
mortgage payments. The financial strain doesn't stop there,
the survey results reveal that retirees still use credit in
some of the same ways they did before retirement. Mortgage aside,
here's where they still owe money:
- 66% have unpaid credit cards;
- 26% are making car payments;
- 7% have unpaid health expenses;
- 7% owe money on holiday expenses or vacation property; and
- 6% haven't paid off home renovations.
"Through our national survey, we took a moment to check-in with
Canadians and gauge how they are stacking up when it comes to
their finances," said Jacques
Goulet, President, Sun Life Financial Canada. "From credit
card debt to a mortgage, retirees are faced with a list of expenses
in life after work. We recognize that managing finances can be
overwhelming, particularly for those who are no longer working.
Seeking sound advice and working with a financial advisor can help
you reach your goals."
At the same time retirees face lingering debt, almost
one-quarter (24%) of working Canadians are dipping into their
retirement savings. Canadians pulled cash for the following
reasons:
- 63% did so because they needed to (e.g., health expenses, debt
repayment);
- 24% as part of the First Time Home Buyers' Plan; and
- 13% because they wanted to (e.g., vacation, car purchase).
"Our survey results highlight the importance of getting ready
for retirement," explains Tom Reid,
Senior Vice-President, Group Retirement Services, Sun Life
Financial Canada. "Although it can seem far away, retirement creeps
up faster than you think – building a financial plan and making
meaningful contributions will pay off in the long run. There are
helpful tools and resources you can tap into to get on the right
track to building the income you want and need to retire."
The following tips can help Canadians save for a bright
retirement:
- Start now. Begin saving and investing as early as
possible to set yourself up for success.
- Don't leave money on the table. If your employer offers
a pension plan and will match your contributions, contribute the
maximum amount possible.
- Invest wisely. If you do not have access to a defined
contribution plan, RRSPs and TFSAs are other great vehicles to
consider.
- Have a plan and stick to it. It's never too late to
build a financial plan that will get you where you want to be.
- Seek valuable advice. A financial advisor can help you
create a financial plan, set achievable goals, and guide you
through each life stage.
Ready to get started? Find a Sun Life Financial advisor
who can support you on your journey to achieve a lifetime of
financial security and well-being.
Sun Life Assurance Company of Canada is a member of
the Sun Life Financial group of companies.
About the survey
The Sun Life Financial Barometer is
based on findings of an Ipsos poll conducted between October 13 and October 19, 2017. A sample
of 2,900 Canadians was drawn from the Ipsos I-Say online panel:
2,900 Canadians from 20 to 80 years of age. The data for Canadians
surveyed was weighted to ensure the sample's regional, age, and
gender composition reflects that of the actual Canadian
population.
The precision of Ipsos online poll is measured using a
credibility interval. In this case, the poll is accurate to within
+/- 2.1% at 95% confidence level had all Canadian adults been
polled. All sample surveys and polls may be subject to other
sources of error, including, but not limited to methodological
change, coverage error and measurement error.
About Sun Life Financial
Sun Life Financial is a
leading international financial services organization providing
insurance, wealth and asset management solutions to individual and
corporate Clients. Sun Life Financial has operations in a number of
markets worldwide, including Canada, the United
States, the United Kingdom,
Ireland, Hong Kong, the
Philippines, Japan,
Indonesia, India, China,
Australia, Singapore, Vietnam, Malaysia and Bermuda. As of December
31, 2017, Sun Life Financial had total assets under
management ("AUM") of $975 billion.
For more information please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New
York (NYSE) and Philippine (PSE) stock exchanges under the
ticker symbol SLF.
Note to Editors: All figures in Canadian dollars except as
otherwise noted.
Media Relations Contact:
Kim Armstrong
Manager, Media & PR
Corporate Communications
T. 416-979-6207
kim.armstrong@sunlife.com
SOURCE Sun Life Financial Canada