How did you imagine retirement? A paid off house or condo, winters in Florida, summers on the golf course? You may be one of the fortunate few that actually get to live this retirement dream, but the reality that many seniors face is bleak. Sadly many Canadian seniors in debt are finding themselves drowning in debt without enough income to pay it off.
- 1/6 of seniors report that they owe more than $100,000. Statistics Canada
- 59% of retired Canadians say they’re carrying debt. And 19% of those say that their debt level has increased over the past year. New CIBC poll
- Canadians over the age of 65 have the highest insolvency and bankruptcy rates in the country. Vanier Institute for the Family
- Average debt for consumers aged 65 and over climbed 6.5% over the past year, the biggest year-over-year increase in the period for any age group. Equifax
- Canadians are entering retirement more indebted than ever. Toronto-Dominion Bank Economic Overview Report dated February 13, 2013
- Half of Canadians say they are not financially prepared for their retirement. CIBC 2012 Poll
What happened to the Freedom 55 pipe dream that we bought into? The Freedom 55 concept is 29 years old. It was a clever marketing plan that was established in 1984 after consumer research revealed that Canadians were becoming increasingly concerned about their futures and retirement plan. For today’s seniors Freedom 75 may be closer to reality, but reality isn’t nearly as attractive as the fantasy of an early retirement and financial freedom.
If you are experiencing serious debt problems contact Ira Smith Trustee & Receiver Inc. today. We can help. Starting Over, Starting Now you can take your first real steps to financial freedom. Watch for our next blog – Seniors in Debt, Part 2 – when we’ll be talking about why the majority of seniors are in debt.