The Retirement of Canadians with Debts, What does it mean?
Canada is a country where certain rights and freedoms are hoped and some are taken for granted. The freedom of taking retirement is one of them and has begun grappling with as we approach middle age. It’s sad to see many people easily apply for their retirement beforehand until they are significantly older. The main reason for this debt is too many retired people almost 34 percent are over 55 years of old age still carry consumer debt, according to the Statistics Canada. Whereas in a recent report from Equifax Canada found that the debt load of senior citizens is outpacing that of their younger counterparts.
This is not new for the citizens of Canada that they are in huge debt, Canadians have always carried out a heavy debt in 2012, and almost 42.5 percent of people were over 65 years and were still under debt. Well, this was a jump of 55 percent when compared to seniors in late 1999. Well, the experts say many social, economic and cultural factors should be blamed for this scenario. Experts point out certain aspects such as illness, divorce, and innumerable mortgages are some of the main culprits.in fact, the survey of 2015 showed us about 18 percent of first-time home buyers are gifted their down-payments with regards to their relatives and parents
But Mr. Dwayne Rettinger is a Certified Financial Professional (CFP) earned his degree from Canada’s Financial Planning Standard Council (FPSC) in 2009. Dwayne Rettinger completed his MBA from Wilfrid Laurier University in Ontario after completing his bachelor’s degree in Mechanical Engineering from the University of Waterloo. He once said, children can’t shoulder all the blame, the reason which is to be blamed is the low-interest rates which attracted many customers towards them. This made look pricey vacations, expensive cars, luxurious cottages, fancy toys out of reach for an average pensioner. Well, parting down and cutting back in your sixties maybe not fair for them. After all, you all worked so hard for the country, aren’t you able to enjoy a little luxury? And It’s true your fixed retirement payment may not be able to full-fill your income and may not support your lifestyle anymore. Is selling your 3000 square-foot home is the only option?
If selling is not an option, many people having large homes can look for equity. Because usually when an average person retires, he has either paid off their mortgages or will be having very less amount to be paid anymore. This happens because of the recent hike in prices of the houses and rents, this makes home’s equity to be something to consider. But always remember as a borrower you need to be aware of how you are going to repay the loan back. It’s impossible to pay the remaining amount of your loan after you die?
It doesn’t matter if the amount is huge or the interest rate is pretty high, all that matters is the planning which you have done to repay it on time. It is very important to know what you need it for. Having a plan for the repayment of your loan will make it look very simple. Always remember don’t borrow money that you don’t need because that often leads to trouble.