Paying down debt remains the top financial priority for Canadians in 2015—the fifth year in a row it has topped the list in the annual CIBC survey.
The poll results also show that retirement planning is declining in importance compared to more immediate financial concerns. Canadians nearing retirement age have also significantly shifted their focus to reducing debt.
Twenty-two percent of those say paying down debt is their top priority in the new year; 12% indicate it’s building savings; 10% say it’s paying bills or getting by; 9% say they care most about managing day-to-day spending or budgeting; and 5% say it’s retirement planning.
“While it is encouraging that paying down debt is important to Canadians, it is also important not to lose sight of longer-term goals like retirement planning,” says Christina Kramer, CIBC’s executive vice-president, retail and business banking.
The poll also finds that paying down debt has become an increasingly important priority for those nearing retirement age, with Canadians ages 45 to 64 prioritizing debt repayment substantially higher versus last year:
- among those ages 45 to 54, 31% say debt repayment is their top financial priority for 2015, compared with just 16% in last year’s poll; and
- among those ages 55 to 64, 25% say debt repayment is their No. 1 financial priority, compared with 14% last year.
“We’ve seen debt repayment close to doubling in importance for age groups that would typically be in their peak retirement savings years, but it is important that they don’t put off retirement planning indefinitely,” she says.
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