Grey divorce and kids returning home can lead to nest egg slipping away
KJ Mullins-Toronto: Seniors aged 55 and older are the largest group in Canada when it comes to insolvency and bankruptcy rates.
Over the past two decades the rate of insolvencies has increased almost 600 percent among 55-64 year-olds. Even more shocking is the increase of those over 65. In just twenty years that rate has soared by 1747 percent. According to the Vanier Institute older Canadians are at a very real risk of being in financial danger.
Over the last decade people who increased their net worth had property. Real estate has been the key to all wealth increases during the 2000s. Households that rented their home did not for the most part increase their net worth.
With net worth decreasing other factors including the recession have added to the debt burden that older Canadians face. The convergence of social and economic factors are creating a perfect storm for an increasing number of Canadians facing their golden years in debt.
“Grey divorce” is on the rise according to Statistics Canada. This trend is expected to continue as the Boomer generation ages. When the marriage rings are removed the chance of severe financial crisis increases.
With unemployment rates soaring since the recession the empty nest is not as likely. Adult children and their children are coming home. With increased household expenses seniors are taking out mortgages and lines of credit just to pay the bills.
As the debts mount seniors often think that there only out is bankruptcy.
At no time have BDO Canada’s licensed debt experts seen so many seniors needing their help. While most feel they need to go bankrupt, BDO is able to provide many other solutions to prevent bankruptcy and prevent the loss of a house or belongings. BDO has been providing legitimate debt relief solutions since 1958.
Senior Vice President and Trustee Doug Jones is available to share his 18 years of knowledge and outline the challenges confronting the senior population and options available to them to take control of their financial problems.
To find a BDO office near you visit their website.