Debt Settlement for Seniors

Seniors Debt Concerns

A shocking finding of a recent (May 2009) study by the Certified General Accountants Association of Canada is that the number of retired Canadians with increasing debt went up at a faster pace than among non-retirees. In a paper entitled Where Has the Money Gone: The State of Canadian Household Debt in a Stumbling Economy, CGA-Canada has identified the retired as one of Canada’s socio-economic groups most vulnerable to increased debt. It goes on to state that retirees are as susceptible to higher debt loads as more traditional high-risk groups.

In 2009, among those aged 55 and over, one-third of retired households had some form of debt with the average debt amounting to $60,000; some 17% of indebted retired households carry a debt of $100,000 or more. A more recent report (Spring 2011) suggests that 44% of Canadians now carry debt into retirement.
For some indebted retirees this means a return to work, many others will sell assets and most will cut back spending.

In 2008 it was found that 36% of retirees were experiencing an increased indebtedness, a sharp increase from the 28% who reported rising debt in 2007. All indicators suggest that this percentage will not decline in the foreseeable future, and may in fact increase.

Many seniors are experiencing a reduced standard of living and/or postponement of retirement plans because: