Seniors worried about running out of money

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The biggest financial fears of Canada’s seniors are running out of money before they die and not being able to pay for long-term care, according to a national survey commissioned by Financial Planning Standards Council (FPSC) and Credit Canada.

Other fears include never being able to pay off their debt, not having enough money to retire, having to sell their house or needing to depend on their children for financial support.

Twenty percent of Canadians are working past age 60, including 6% over the age of 80. Their reasons are varied: they can’t afford retirement/don’t have enough savings, they have too much debt, and they’re still helping their children financially. On the positive side, some continue to work because they love their jobs. Lucky them.

The report shows what could be a generational shift in how seniors are supporting their retirement. Fifty percent of those 80 and older list a company pension plan as an income source, while the percentage is 41% among those between the ages of 60 and 69.

More than half (56%) of Canadians age 60 and older carry at least one form of debt.

“Credit card debt leads the way (32%), followed by lines of credit (23%), mortgage debt (19%), and auto loans (14%),” the report notes. “Surprisingly, 35% of seniors age 80 and older are carrying at least one form of debt, including credit card debt (24%) and, perhaps most unexpectedly, a car loan (9%).”

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