Toronto, Ontario, Canada (AHN) – A study released on Thursday identified the desired retirement age for the average Canadian worker at 63. The report by the Canadian Imperial Bank of Commerce said 37 percent of survey respondents cited that age as the time when they would likely have saved enough to permanently leave the workforce.
However, many of them upon nearing their target retirement age find they could not afford to retire because of insufficient savings and accumulated personal debts.
Although only 22 percent of the survey respondents said they would likely still have outstanding payables due when they reach their target retirement age, previous CIBC surveys showed that 54 percent actually still have some debts at that time, according to CIBC Executive Vice President Christina Kramer.
The discovery of financial insufficiency leads many employees to postpone retirement beyond their original target date or to cut expenses to stretch their income or future pension.
An International Monetary Fund study said that Canadian personal debt has surged by 30 percent since early 2009. It partly blamed mortgage payments that increased for many Canadian homeowners after Ottawa reduced the maximum amortization period to 30 years from 35 years.
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