A new Edward Jones survey reveals that most Canadians opt to pay off debt when granted a lump sum despite growing increasingly concerned about having to work longer to supplement retirement savings.
Poll results show that nearly one-in-three Canadians planned to use their 2015 tax returns to pay down debt, while fewer than one-in-10 planned to use that money to save for retirement.
“It’s a common dilemma for many Canadians. ‘Should I pay down my debt, including my mortgage, or contribute to my retirement savings account?’” said Patrick French, director of financial and retirement planning with Edward Jones.
“Unfortunately, there’s no easy or definitive answer. When carefully factored into an overall financial strategy, a lump sum of money can mean an opportunity to pay off debt and also accumulate retirement savings, but Canadians need to strike the balance that is right for them.”