Financial Literacy

Planning for Retirement, Despite Having Debt

retirement planning

Retirement planning can seem like an impossible task when you’re burdened by debt.  For many Canadians, it’s hard enough coping with the pressures of today, let alone thinking of tomorrow.

Household Saving Rate in Canada

Troublingly, Canadian savings rates continue to be well below the recommended level – 10% of net income. The latest data from Trading Economics reveals that Household Saving Rates in Canada decreased to 1.10 percent in the first quarter of 2019 from 1.40 percent in the fourth quarter of 2018, reaching near record lows.


source: tradingeconomics.com

Why don’t Canadians save?  One reason may be that we never learned that savings comes first.  When we first received an allowance as a youngster or got our first pay cheque, not enough of us learned to put some of our money away, right off the top.

According to a recent article published by Forbes, handling personal spending and paying off debt are key to retirement planning.  While the focus is on early retirement, the article offers some helpful tips on how to plan ahead.

Retirement planning can seem daunting when you are in debt but it’s important to start small – whatever your finances – and build from there.

If you need help with debt management, budgeting or general financial education, we can help you pick a credit counsellor. Click here to find a credit counsellor near you.

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