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Seniors swamped in debt

Fifty-nine per cent of retired Canadians hold debt, according to a Harris/Decima study conducted for CIBC.

While that figure is less than the national average (76 per cent), seniors are less likely than the national average to have made extra lump-sum payments to service that debt.

Seniors are carrying 57 per cent of their debt through line of credits (29 per cent) and credit cards (28 per cent).

“Debt carried into retirement can affect retirement plans and cash flow, as the monthly payments must come from pension earnings or from retirement savings — both of which were intended to serve as retirement income,” CIBC said. ◊