Financial hardship is becoming more prevalent across Canada and living pay check to pay check is becoming the norm, with 73 per cent of Canadians saying they will suffer down the road by not having enough money put aside, according to H&R Block.
However, employers could help employees retire early by providing 100% matching contributions, says a separate report. With access to these funds, employees could retire two years earlier with an additional $250,000 in retirement savings at age 65, if they pay off debt early rather than focusing on retirement savings from age 30.
Alternatively, splitting income between saving for retirement and paying off debt for the entire period until retirement at age 65 could mean taking three times as long to pay off debt and leave employees with a shorter period of time to make larger retirement contributions, the report from Mercer Canada said.
