CIBC Poll: More Than Half of all Retired Canadians Carrying Debt

Nearly one in five retired Canadians say their debt level has risen in the 
past year 
TORONTO, July 15, 2013 /CNW/ - A new CIBC (TSX: CM) (NYSE: CM) Poll conducted 
by Harris/Decima reveals 59 per cent of retired Canadians say they are 
carrying debt. Among this group, 19 per cent say the amount of debt they are 
carrying has increased in the past 12 months. 
Highlights of the poll include: 


    --  59 per cent of retired Canadians said they currently have debt,
        compared to the national average of 71 per cent across all age
        groups
    --  Among retired Canadians with debt, 19 per cent say in the past
        12 months their level of debt has increased, while another 36
        per cent say their debt levels have stayed the same -indicating
        more than half (55 per cent) of all retired Canadians with debt
        missed an opportunity to pay it down over the past 12 months

"When you reach retirement, you should be able to enjoy the money you have 
worked hard to save over your lifetime," said Christina Kramer, Executive Vice 
President, Retail Distribution and Channel Strategy, CIBC. "Canadians carrying 
debt into retirement may miss out on the full benefit of their retirement 
savings because they are using some of it to make their monthly debt payments."

While fewer retired Canadians are carrying debt compared to the national 
average across all age groups, paying down your debt becomes more difficult 
after retirement when many Canadians transition to a fixed income.

Retirees Carrying Debt on More than one Product

With more than half of all retired Canadians managing debt, the poll also 
reveals that 37 per cent of retired Canadians are juggling two or more debt 
payments a month. Among retired Canadians with debt:
    --  39 per cent say they are carrying debt on their credit card
    --  30 per cent say they are carrying debt on their line of credit
    --  16 per cent say they are carrying debt on their mortgage
    --  14 per cent say they are carrying debt on their loan

"With today's low interest rates, there is an opportunity for retired 
Canadians to review their monthly cash flow and make progress in paying down 
their debt. Although future interest rate changes can't be predicted, being 
on a fixed income means any interest rate increases will have a greater impact 
on your monthly cash flow for those retired Canadians carrying debt," 
explained Ms. Kramer.

"An advisor can help you review all of your finances and determine whether 
there are ways to accelerate your debt repayment, such as consolidating your 
debt at a lower interest rate or making slightly higher regular payments," 
adds Ms. Kramer. "Cash flow is a major component of retirement planning, 
meaning that even small reductions to your debt load can make a big difference 
in your monthly cash flow."

Advice on Managing Debt for Retired Canadians:

For Retired Canadians focused on paying down debt, Ms. Kramer offers the 
following advice:
    --  With many retired Canadians juggling more than one debt payment
        a month, an advisor can help to structure your debt to minimize
        overall interest costs by utilizing a debt product with a lower
        interest rate
    --  Make lump sum payments to higher interest debt first to reduce
        interest costs
    --  While interest rates remain near historic lows, don't ignore
        the long term benefits of making small adjustments to your
        payment today.  Setting your debt payment even slightly higher
        than your required payment can reduce your overall interest
        costs and help free up some of your monthly cash-flow
    --  Use free budgeting tools to help you stay on budget - CIBC
        CreditSmart available to CIBC credit card holders allows you to
        set customized budgets and receive spend alerts if you exceed
        your planned budget for the month, helping you stay on top of
        your everyday budgeting and saving

KEY POLL FINDINGS

Percentage of Retired Canadians currently managing some form of debt,
by region:
    National                  59%

Atlantic Canada           65%

Quebec                    58%

Ontario                   60%

Manitoba and Saskatchewan 58%

Alberta                   53%

British Columbia          59%
                           

Among Retired Canadians that said they are currently managing debt,
percentage
that say their debt has increased or stayed the same in the past 12
months, by region:
    National                  55%

Atlantic Canada           82%

Quebec                    50%

Ontario                   54%

Manitoba and Saskatchewan 35%

Alberta                   52%

British Columbia          52%
                           

Among Retired Canadians that said they are currently managing debt,
percentage
that say they are juggling two or more debt payments each month, by
region:
    National                  37%

Atlantic Canada           42%

Quebec                    38%

Ontario                   36%

Manitoba and Saskatchewan 36%

Alberta                   35%

British Columbia          34%

*Each week, Harris/Decima interviews just over 1000 Canadians through teleVox, 
the company's national telephone omnibus survey. These data were gathered in 
subsamples of 766 retired Canadians between March 28 to April 7, 2013 and 373 
retired Canadians between April 25 - 28, 2013. Samples ofthis size have a 
margin of error of +/-3.5%, 19 times out of 20 and +/-5.1%, 19 times out of 20 
respectively.

CIBC is a leading North American financial institution with nearly 11 million 
personal banking and business clients. CIBC offers a full range of products 
and services through its comprehensive electronic banking network, branches 
and offices across Canada, and has offices in the United States and around the 
world. You can find other news releases and information about CIBC in our 
Press Centre on our corporate website at www.cibc.com.

Kevin Dove, Head of External Communications, CIBC, 
416-980-8835,Kevin.dove@cibc.ca

SOURCE: CIBC

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CO: Canadian Imperial Bank of Commerce
ST: Quebec
NI: FIN ECOSURV 

-0- Jul/15/2013 09:00 GMT