A Sun Life Financial Barometer study finds 33 per cent of workers in B.C. have withdrawn money from retirement savings and one in four retirees are living in debt. Photo courtesy CBC.
A Sun Life Financial study says a worry-free retirement may be a thing of the past as retirees live in debt and workers are dipping into retirement savings.
The Sun Life Financial Barometer, a new study, found one in three Generation X workers in B.C. has withdrawn money from their nest egg.
That’s compared to the national average of 24 per cent.
Meanwhile, 26 per cent of people who have retired in the province is not able to pay off their non-mortgage debt every month.
The report found 21 per cent of retirees still owe money on their home.
Excluding mortgage debt, retirees in B.C. face an average debt of $12,166, about a thousand dollars more than the national average.
Meanwhile, for those in the workforce, the national average non-mortgage debt is $18,660, while nearly two-thirds of survey responders face credit card payments each month.
Sun Life says of those who dipped into their future savings, 63 per cent said they had to for covering expenses and 24 per cent did so as part of the first time home buyers’ plan.
The other 13 per cent did so to help pay for vacations, to buy a car or other big purchases.
“Although it can seem far away, retirement creeps up faster than you think,” Sun Life Group Retirement Services Senior Vice President Tom Reid said.
“Building a financial plan and making meaningful contributions will pay off in the long run.”
Sun Life says people should prepare for retirement now by starting to save money, stick to a plan and to invest wisely.
Andy Neal
