TORONTO—More than half of retired Canadians hold some form of debt which may cut into their retirement plans and cash flow, a new poll suggests.
According to the survey conducted by Harris Decima, 59 percent of retired Canadians currently are in debt, compared to 76 percent of non-retirees.

The CIBC, which funded the survey, said the results highlight the need for Canadians to have a good debt repayment strategy, especially as they approach retirement.
That’s because fixed incomes make it more difficult for retirees to pay down their debt.
“While retired Canadians carry less debt than the national average, their debt could be stagnant and may end up costing them more in interest costs over a longer period of time,” warned Christina Kramer, executive vice-president of retail distribution and channel strategy at the CIBC.
“You really have to think about the debt you are retiring with because the regular repayments you make will directly affect the discretionary income you have,” she stressed.
That’s because for retirees, who have fixed incomes, all monthly payments must come from retirement savings or pension earnings.
This can affect how much money they have left to cover their day-to-day expenses.
Only 27 percent of the retired Canadians surveyed say they have made an extra payment towards their debt in the last 12 months, compared to 42 percent of non-retired Canadians.
On average, retired Canadians carry 1.65 debt products with a balance, such as mortgages, lines of credit, loans, and credit cards.
In contrast, non-retired Canadians carry 2.64 products with a balance.
The percentage of retired Canadians with debt was highest in Atlantic Canada, at 76 percent. All other regions hovered just below 60 percent.
The telephone poll of more than 2,000 Canadians is considered accurate to within 2.2 percentage points, 19 times out of 20.
A survey released in the spring suggests that being debt-free is key to the idea of a successful retirement for nearly nine in 10 Canadian homeowners.
The dream of being debt-free was more important to the roughly 2,000 respondents than living near family, keeping busy with a hobby or volunteer work, or having a broad group of friends.
Only having good health was listed by more people, according to the survey conducted for Manulife Bank.
Kramer recommends working with a financial advisor to plan out how to best repay your debt.
She also suggested setting your debt payment slightly higher than the required payment to reduce overall interest costs.