Canadian baby boomers share the same concerns as their counterparts.
As retirement approaches, let’s highlight the most frequently reported concerns during consultations.
INCREASING DEBT
Debt has increased for all age groups, and baby boomers have not been spared. With the historic rise in interest rates and the cost of living, without the possibility of increasing their income, they have turned to the web for solutions. According to various measurement tools, we found that the most sought-after solution was debt consolidation. This solution, while used, can contribute to a subtle increase in debt, leading to a harsh awakening later on.
MORTGAGE ON THE RESIDENCE
The anxiety of reaching retirement while still having a mortgage on the residence weighs heavily on baby boomers. With reduced income, many wonder if they can afford to keep their home, which for many is their main investment.
CONSUMER DEBT (PERSONAL LOANS, CREDIT CARDS, LINES OF CREDIT…)
In the past, people only had one credit card. With the advent of loyalty programs, multiple credit cards now fill the wallet. The interest cost of unpaid balances is staggering. Many account statements reviewed showed more than 30 years to pay off the balance by only making the minimum payment! Additionally, for several years, the price of vehicles combined with interest rates has contributed to an imbalance of the household budgets.
FINANCIAL SUPPORT TO CHILDREN/GRANDCHILDREN
Many baby boomers feel obligated to financially support their children and spoil their grandchildren. Whether it’s for back-to-school, day camps, a down payment for property, or to get through a difficult period (separation, illness), all reasons are valid, but relying on credit cards or other financial products contributes to increasing the debt of future retirees.
INSUFFICIENT RETIREMENT PREPARATION
Another major concern is not having saved enough for retirement. Life expectancy is getting longer, thus requiring more resources. The idea of selling the house to move into an apartment or downsizing could be a psychological battle. For many, the house is the main investment leverage, but selling this property is essential to access the accumulated return over the years.
We cannot ignore the lack of preparation beyond finances. Boredom! Many find part-time work to combat boredom, which results in a tax bill at the end of the year because of insufficient source deductions. For this generation, this could be catastrophic.
CONSULTING
If you recognize yourself and don’t know what to do, know that we are here to guide you and find solutions.
Bankruptcy can be avoided when you consult at the first sign of financial fatigue.
A free and non-obligatory virtual or in person meeting with a licensed insolvency trustee or a Ginsberg Gingras advisor could reduce the stress of repaying your debts.
For an appointment, call (800)567-1905, visit us at https://ginsberg-gingras.com/ or schedule your own appointment at https://ginsberg-gingras.com/en/book-an-appointment/