As you approach retirement, it’s more important than ever to take stock of where your finances are. Most important is how much debt you’ll be taking into retirement. With the pandemic stretching into its third year, debt numbers have increased (household debt rose to $2.6 trillion in Canada in 2021, and the debt-to-income ratio is 186.2% on average per household). However, not every kind of debt is a bad sign in retirement.

You have nothing to worry about if you’re entering retirement with a fixed-rate mortgage. This is what’s considered good debt and can be paid in steady increments if your budget allows for the mortgage expense based on your new pension income. With the current low-interest rates, budgeting to pay a mortgage for years over time is a reasonable decision. Other forms of debt with higher interest need the assistance of a Licenced Insolvency Trustee. High-interest credit card debt can accumulate quickly and disrupt your retirement plans. Student loan debt which might still exist is another form of debt which you will now need assistance to get rid of; look into a debt forgiveness program if you still have existing debt. Don’t take on additional student loans for family members.

If you financial plan has had a bump in it and you need to rebalance your debt as you plan for retirement, turning to a Licenced Insolvency Trustee as your trusted professional can be the answer you need. Goldhar & Associates Ltd., Licensed Insolvency Trustee has a team of trusted professionals to guide you on a safe path to the future you deserve. Book a free consultation now, and you can shed the debt for pennies on the dollar by calling 855-541-5114, emailing pdrt@goldhar.ca, or visiting our website: www.shedthedebt.ca

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