The importance of financial literacy is being hammered home as financial organization release data showing people are entering retirement with more debt. A TD Bank poll found that those 65 and over gained more than $6,000 in new debt—15% more in 2012 than the previous year—most was from consumer spending.
Information from Personal Bankruptcy Canada, a nationwide network of bankruptcy trustees dedicated to helping people deal with bad debt, says one-third of retired households carry an average debt of $60,000, and 17% carrying an average debt of $100,000 or more.
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Data released by the Office of the Superintendent of Bankruptcy (OSB) last week showed almost a 10% increase in consumer filings in New Brunswick, the province with the highest proportion of the population aged 65 or older.
“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 David Smith, president of Personal Bankruptcy Canada
“Over half of Canadians aged 50 and older believe they will run out of retirement savings within the first 10 years after leaving work,” he continues. “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.”