Most Canadians don’t know what their retirement income will be
According to one survey, 83 percent of Canadians don’t know how much income to expect when they stop working.* More and more Canadians seem to be waking up to what this may mean for their retirement. As they look ahead to retirement, they are realizing that their bad spending habits may catch up to them sooner rather than later. It’s hard to retire and live on less income if you don’t put a plan in place well before you stop working full time.
Make sure your debts retire before you do
In the 10 years before you retire, consider how you can pay off all of your debt and leave it paid off. Avoid committing to payments that you’ll need to keep making after you retire. If you refinance your mortgage or obtain a home equity loan, have a budget in place first so that you know you can have it paid off by the time your income drops.
Without a plan, your debts, unfortunately, may not face retirement at the same time you do.
If you would like some helpful tips and strategies on how to reduce your debt, click here.