Seniors are carrying debt – Background
Seniors are carrying debt. Senior finances are nothing short of alarming. How will retirement look for you? Will you be taking part in wonderful retirement activities such as traveling the world in style? Will you continue to work in one of the jobs for retirees? Will you be at home living in poverty on a meager government provided pension?
This is such a serious issue that we have written a series of blogs on the topic which delve into WHY seniors are carrying debt.
- How Hoarding Cash Does Not Always Lead To Good Debt Free Living And Retirement Income Planning
- Seniors Acquiring More Debt Delays Retirement
- Senior Citizen Debt Relief: 31% of Canadians believe CPP/QPP will be enough
- Video: The Stress of Seniors Carrying Debt
- The Modern Rules of Seniors Carrying Debt
- Seniors Debt Relief: Gray Debt on the Rise
- Able to Retire? Can You Afford To – Or Want To?
- Seniors In Debt: Solve It Without Bankruptcy
- Will I Ever Be Able To Retire?
- Canadian Seniors In Debt, Part 1 – What Do The Golden Years Really Look Like?
Seniors are carrying debt – What is the current situation?
The latest facts and figures will not offer any comfort I’m afraid. According to a report by the Broadbent Institute on seniors’ finances:
- 47% of Canadians aged 55 to 64 don’t have an employer pension plan
- 50% of Canadians aged 55 to 64 who don’t have an employer pension have less than $3,000 saved up for retirement
- Of the Canadians without an employer pension plan those who earn $50,000 to $100,000 a year have saved up an average of $21,000
- Of the Canadians without an employer pension plan those who earn $25,000 to $50,000 a year have saved up an average of $250
- Less than 20% of people over age 55 who don’t have an employer pension have enough to live in retirement for five years or more
- The poverty rates for single seniors, especially for women, is nearly 30%
If seniors are carrying debt, will seniors be living in poverty?
According to Rick Smith, executive director of the Broadbent Institute, “This new data on retirement savings and gaps in support makes one thing perfectly clear — we have a retirement income crisis on our hands that requires urgent government action now.” The reality is seniors are carrying debt and it’s time for the federal government to step up to the plate and in a meaningful way, increase the amount of money we give seniors. Having seniors living in poverty in the greatest country in the world is just not acceptable.
What can I do now to avoid being a senior living in poverty?
The sooner you address debt issues, the better. Eliminating debt is an excellent first step. Contact the Ira Smith Team. We’re professional, federally licensed trustees who can help you conquer your financial problems so that Starting Over, Starting Now you can put debt behind you and start saving for the future.