If you’re planning to buy a home then make sure that your mortgage does not come in between you and your retirement goal. In British Columbia more than half the population expected to retire after they reach 56. That is very close to the retirement age.
Two in five are now implementing the household budget to cut back on debt. The same proportions of people are also trying to put a lump sum to manage that. About half of the population who have debt are cutting spending to manage debt.
A similar survey conducted last year showed that the expectation of being debt free – the age – increases as the population grows older. What I mean is, if you are 35 years now – then you thinking about not being able to debt-free for your entire life is very low compared to if you were 65 years or older.
The CIBC survey shows that between the age of 35 to 44 the amount of debt peaks. At this age group almost 9 in 10 people have some kind of debt. After age 65 only 44% of the population will have debt.
It is important to plan the mortgage at a very early age so that the retirement target is not missed.