Atlantic workers more likely to tap retirement savings

Last updated on September 5th, 2018

Atlantic workers are more likely to draw on their retirement savings than other Canadians, according to a survey conducted by Ipsos Reid for Sun Life Financial.

The survey notes that 31% of workers in the Atlantic have already used money set aside for retirement for other purposes, while the Canadian average is 24%.

Of this number in the Atlantic, 17% of survey respondents indicate that this withdrawal was made to “satisfy their desires”, which the survey authors describe as, for example, taking vacation or buying a vehicle.

Canadian workers who say they have tapped into their retirement savings:

  • 63% say they did so out of necessity, for example to pay off debts or to pay medical expenses;
  • 24% used this savings as part of the federal homeownership program;
  • 13% say they did it to satisfy their wishes.

Mortgage bonds better managed in the Atlantic

The survey reveals that one-quarter (25%) of Canadian retirees are in debt. Non-mortgage debts of retired Canadians average $11,204.

Among active workers, the average non-mortgage debt is $18,660.

On the other hand, the number of Atlantic retirees who have not finished paying off their mortgages, or do not repay their mortgage debts every month, is slightly lower than the national average.

In the Atlantic, 17% of retirees do not have mortgages, compared to 20% in Canada as a whole. One in five pensioners (20%) in the Atlantic admits that they do not always make their monthly payment, compared with 25% nationally.

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