*Average Alberta debt taken from Money Mentors Client 2014 Intake Reports. Exact amounts cannot be released
CALGARY, May 13, 2015 /CNW/ - Current financial trends have recently shown that there is a vast increase in Canadian debt insolvency from people born during the 1940s - 1960s. Since January 2014, an increase of 28% of those aged 55-70 have been dealing with financial difficulty, and the numbers are only set to go up in Alberta. Cost of living in our province, and across Canada, is rising at a steady rate, and the income available significantly drops off after retirement.
Money Mentors' wants to remind all those with financial difficulties that there are other options. Filing for bankruptcy at the age of 60 should not be your only way out.
In 2014, about 25 to 28 percent of Money Mentors' clients were between the ages of 55 to 70+ and had about $40,000 in average debt. Reports generated from client intake in quarter one of 2015 shows an increase of about 5 to 7 percent across all of our six offices in Alberta.
Normally, these age groups have been known for their good savings habits, so why the struggle right before, or during retirement?
It can be argued that some of the reasoning is: seniors borrowing money to assist their adult children, or not enough retirement savings to begin with. This often leads to the usage of payday loans, credit cards, and other financial products with high interest rates.
According to the Center for Retirement Research at Boston College, 71% of people born between 1965 and 1974 are at risk of having no ability to retire. The same study showed that 52% of people born between 1948 and 1954 are at risk of not maintaining as strong of a standard of living heading into retirement.
In comparison to younger generations, Alberta seniors aged 55-70+ are leading a race that no one wants to be winning. Taking financial classes, or meeting a financial counsellor might be some of the ways we can prevent this from happening in the near future. The question is how long it takes before many seek help.
How can seniors get out of debt during or before retirement?
Advice from Money Mentors Alberta debt and financial expert, Brian Betz, for people currently experiencing financial difficulties is to understand where you are spending your money. You can put your best foot forward by developing a spending plan in which the financial adjustments required allow you to live within your means, and deal with your current debt.
In Canada, the amount needed to save for retirement is ever-changing, and at Money Mentors, we advise Albertans that the best way to prepare is by being over prepared. If you are looking for guidance, or need more information regarding the best option for your debt, Money Mentors is always available. Whatever your situation, our accredited counsellors have excellent training and are only looking out for you.
Money Mentors is the only Alberta-based, not-for-profit credit counselling agency. Through a number of services, we help families and individuals recover from financial crisis and move forward. From credit counselling and money coaching to retirement planning and community financial literacy, we are contributing to a healthier financial future for the entire province.
SOURCE Money Mentors
Image with caption: "Money Mentors Debt Chart (CNW Group/Money Mentors)". Image available at: http://photos.newswire.ca/images/download/20150513_C5879_PHOTO_EN_16571.jpg
or interviews, contact: William Akoto, MoneyMentors.ca, Toll-free: 1-888-294-0076, [email protected], Facebook.com/MoneyMentors, Twitter.com/MoneyMentors
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