Debt management advice for Retirees AND Seniors

Retiring with debt can be stressful. These days, many retirement age Canadians and seniors are carrying increased levels of debt and in supporting that debt, face a reduced standard of living. The increase of indebtedness amongst baby boomers (also known as the ‘sandwich generation’) and the aging population could be attributed to a number of factors: 

• investments may have suffered substantial losses during market downturns
• pensions may be frozen or even reduced due to pension fund losses
• savings once thought to support seniors through retirement are earning record low interest
• seniors may be on fixed incomes, with no capacity to earn more money
• adult children are living at home longer and possibly requiring financial assistance
• strong desire to financially help children and grandchildren, even when they cannot support themselves
• decreased mental fitness
• medical and health care costs
• depression caused by various factors such as the loss of a spouse
• telemarketing scams targeting the seniors
• costs of long-term care
• children and grandchildren taking advantage of trusting elders

If you or family members are approaching retirement, or are already retired and financial stress is affecting your/their health and well-being, BDO can help.

Our debt professionals are experienced in helping retirees and seniors deal with their debt problems. We can work with you to explore your options for dealing with debt after retirement such as filing a consumer proposal that would consolidate your debt, stop the interest, and allow you to make one manageable payment, while protecting your pensions and RRSPs.  Talk to a BDO advisor today to discuss how you can deal with debt in retirement.

Help aging family members avoid debt problems and financial abuse

No one likes to see their aging parents, neighbours or other family members lose their physical and mental independence and it can be hard to talk to them about needing help. You must pay attention to them and monitor their activity.  Here are some tips to help identify when there might be financial concerns as well as suggestions for helping prevent a financial problem from developing:

• Be observant and recognize subtle changes. If you notice a problem in one area (mobility etc, memory loss…) chances are there might be problems in another area
• To help prevent your parents from being taken advantage of financially, know who they see and talk to - their friends, acquaintances, caregivers and other individuals in positions of trust
• Suggest they add themselves to the Do not Call registry to prevent calls from telemarketers
• Offer to help aging parents take care of home repairs, setting up cable or phone services or major purchases to help stop them from being scammed
• Watch to see if mail is regularly opened or it piles up
• Take note of websites they may be frequenting such as online bingo or gambling sites
• Watch for activity inconsistent with their ability, such as ATM use by a physically impaired person
• Watch for increased activity on credit cards or withdrawals made from savings accounts or RRSPs in spite of penalties
• Watch for new authorized signers on accounts or changes to account beneficiaries, changes in property title, or new or a refinanced mortgage
• Watch for any changes in Power of Attorney, Wills or Trusts
• Obtain credit bureau disclosure reports and watch for identity theft or transactions they may have forgotten or are hiding
• Look at loyalty cards for casinos and other possible avenues for spending beyond their means
• Make sure caregivers are hired from reputable agencies and that references are checked