CALGARY, ALBERTA -- (Marketwire) -- 03/06/13 -- It is a fairly well established fact that Canadians are not putting aside enough money for retirement, and to make matters worse, more Canadians are carrying debt into retirement. One-third of retired households carry an average of $60,000, and 17% carrying an average debt of $100,000 or more.
According to data released last week by TD Bank, debt accumulation by those aged 65 and over is markedly up. This group gained more than $6,000 in new debt, or 15 percent more in 2012 than the previous year and most of this is from consumer spending. It's an increase that Personal Bankruptcy Trustee, David Smith, says is contributing to the rising number of insolvent "grandpa debtors".
"Living on a fixed income can pose many challenges for new retirees but with more seniors entering retirement with debt and not enough savings, any sort of unexpected financial hiccup can push them into a bankruptcy," says Smith, President of Personal Bankruptcy Canada, a nationwide network of bankruptcy trustees dedicated to helping people deal with bad debt.
Data released by the Office of the Superintendent of Bankruptcy (OSB) last week shows a close to 10 percent increase in consumer filings in New Brunswick, the province with the highest proportion of the population aged 65 or older.
"Over half of Canadians aged 50 and older believe they will run out of retirement savings within the first 10 years after leaving work. It's amazing how many retirees I see using credit cards to pay their bills. The reality is that too few Canadians are properly prepared for retirement," says Smith.
Seniors and retirees in need of support or assistance with debt are advised to speak with a bankruptcy trustee.
About Personal Bankruptcy Canada
Personal Bankruptcy Canada is a free website that provides consumers with general debt and bankruptcy resources, including access to highly qualified bankruptcy trustees across the Canadian provinces and valuable education information on bankruptcy and debt management.
Personal Bankruptcy Canada member trustees from across the country are available for local media interviews regarding grandpa debtors, eliminating debt before retirement, retirement planning, personal bankruptcy in retirement, and financial literacy. To schedule an interview please contact, Angela Joyce.
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