Mortgages or Margaritas

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2015-02-18

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Mortgages or Margaritas: Is paying down
debt putting your retirement at risk?

The first two months of the year are known as “RRSP season” since the contributions you
make to your RRSP up until March 2, 2015 allow you to claim a tax deduction on your 2014
tax return. For Canadians facing record levels of debt,1 however, contributing to an RRSP in
2015 may seem like a luxury they simply can’t afford this time around. The decision to pay
down debt, at the expense of retirement savings, is often an emotional one that isn’t driven
by the numbers. With mortgage interest rates at a 60-year low, neglecting your long-term
savings in favour of debt repayment may result in sacrificing the quality of your retirement.