Managing your mortgage obligations while trying to save for retirement isn’t getting any easier for Canadians, with a new poll revealing that over half expect to carry their mortgage into their retirement years.
BMO Financial Group released a study today indicating that many Canadian homeowners are feeling the pinch of balancing mortgage responsibilities with saving for retirement.
The survey, conducted by Leger Marketing for BMO Financial Group also found that 52 per cent of homeowners feel their debt load or mortgage is hindering their ability to plan or save for retirement, in addition to the 51 per cent who said they expect they will still paying off their mortgage after they retire.
For those who are successful in eliminating their mortgage, the payoff is lower debt levels after they stop working, said Tina Di Vito, head of the BMO Retirement Institute.
“When you are no longer receiving employment income, it makes it much harder to let go of large amounts of money,” she said.
Of those expecting to carry their mortgage into retirement, the percentage was highest in B.C (59 per cent) and Quebec (58 per cent) and lowest in Atlantic Canada (43 per cent) and Alberta (46 per cent).