Holding debt isn't stopping Canadians from contributing to their retirement - but it does impact how much they can save

TORONTO, June 18, 2012 /CNW/ - Canadians holding debt are actively contributing to their retirement savings - but the more debt products they hold, the less they are able to put away for the future each month, according to a new CIBC (CM.TO) (CM) poll conducted by Harris/Decima.

Key Poll Findings:

"These poll results clearly illustrate the connection between good debt management and your ability to save for your long term financial goals," said Christina Kramer, Executive Vice President, Retail Distribution and Channel Strategy, CIBC. "Planning for a successful retirement involves more than just having a regular savings plan. It also requires a strategy to pay down debt, reduce interest costs, and redirect those funds towards long term savings."

Past CIBC research has shown the likelihood of holding debt peaks at age 45, and then declines. As Canadians pay down their debt they have an opportunity to direct more of those funds towards retirement. Ms. Kramer notes there is an opportunity for Canadians to look at their finances holistically to accelerate this curve.

"A positive finding from this poll is that Canadians appear to be very aware of the importance of putting away money for the long term, however balancing that against the immediate need to repay debt can be a challenge," added Ms. Kramer. "The message is not that holding any debt will negatively affect your future, it's that debt repayment needs to be managed appropriately to open up opportunities to accelerate retirement savings for the future."

Advice on Managing Debt:

For Canadians focused on paying down debt, Ms. Kramer offered debt management tips to take charge of their finances and reduce debt as part of their long term financial plan.

"There is a clear benefit to sitting down with an advisor and working through your plans on both the savings and debt management side of your finances to help you achieve what matters to you in the long term," added Ms. Kramer.

To learn more tips and try various debt repayment tools and calculators, visit the CIBC Advice Centre.

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CIBC Poll: Debt Drags Retirement Savings Down