Pay your debt now

While each of us has unique financial priorities, there’s one goal we can agree on: Eliminating our debt before we retire will help achieve a comfortable retirement lifestyle.

A recent Scotiabank poll, conducted by Harris/ Decima, found that 68% of Canadian pre- retirees who currently have a mortgage say it’s unlikely they will carry a mortgage when retired. That’s a smart objective, since it can be difficult for seniors to manage cash flow on a fixed income while still juggling loan payments.

While it may seem like a stretch to retire your debt before you retire from the workforce, the survey found that 46% of Canadians 55+ are currently debt- free. How did they do it? They likely made smart borrowing decisions during their working years and avoided excess credit. They also may have sought out expert advice from a financial advisor for practical ways to pay down their mortgage, take advantage of prepayment options, or increase their payment frequency.

If you’re nearing retirement, there’s still time to reduce or pay off your debts. With a list of all your loans, payments, and interest rates, your advisor can help you set a goal to pay them down as quickly as possible, decide which debts to tackle first, and suggest ways to accelerate payments.

You might also consider reducing your living expenses, revising goals or delaying your retirement date. By getting expert advice and making the right decisions now, you can eliminate or reduce your debts, and give yourself some peace of mind.