Older Canadians postponing retirement due to inflation, debt: survey

About half of Canadians over 55 will delay retirement due to inflation and debt issues, according to a new survey.

The poll conducted by the Angus Reid Institute suggests 40 per cent plan to put off retirement because they are too far in debt..

As well, 62 per cent say they have delayed retirement because of a lack of savings.

Laurie Campbell, director of client financial wellness at Bromwich+Smith, says the retirement landscape is changing quickly with rising inflation and interest rates.

“So this is kind of like a domino effect that’s impacting so many people. Add debt to that and a lot of people are not going to be retiring as they had planned.”

The survey of about 1,500 people also found 71 per cent of those asked are worried they will run out of money after they retire, including 25 per cent who think they will have to sell their home to retire.

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Federal finance minister Chrystia Freeland delivered a keynote address about the state of the Canadian economy in downtown Toronto last Thursday.

She called the spike in inflation a “global phenomenon” that is rising due to world issues such as Ukraine, COVID-19, and more.

Craig Wright, chief economist with RBC, says doing nothing might be the best option.

“The primary role for cooling off any inflation … falls to the Bank of Canada rather than the minister of finance, and I think in terms of what the minister of finance can do, sometimes doing nothing is the right thing to do,” he explained.

He believes managing inflation should be left to the Bank of Canada.

“It’s probably prudent for the minister to keep the powder dry in case the economy takes a turn for the worst as we get through next year,” he added.

The Bank of Canada most recently raised its key rate by a half a percentage point — the second time in the past few months — bringing it to 1.5 per cent in June.

With files from The Canadian Press, Cormac Mac Sweeney, and Hana Mae Nassar