Seniors are accumulating more than they can afford in their retirement, and are more likely to declare bankruptcy
The growing number of older people are incurring more debt as they age and are more likely to declare bankruptcy according to a study that was commissioned by The federal government. The need to provide support for the children of adults who take longer to find jobs contributes in this direction, as per the study that was conducted by Louisiana bankruptcy attorney.
The report, compiled by the market research company The Strategic Council, also shows that the number of older people who are enrolled in pension plans is decreasing. There is evidence of rising income inequalities for those who are 65 or over. “Demographic and economic as well as behavior trends suggest that the current situation of Canadians as they enter their retirement age is difficult,” the study found.
People who are older also have trouble with financial literacy. They find it challenging to manage financial matters as they get older according to the report. They also are more vulnerable to financial fraud. The report suggested that strategies to improve financial literacy consider age-related issues as well as stigmatizing older people, health issues as well as elder-related abuse. Many older people aren’t familiar with the world of online which causes problems with handling their financial affairs, the report also revealed. “The matter of digital literacy is discussed by various experts as the most significant obstacle or barrier for many older people in the quest to improve their financial literacy as well as money management abilities,” it reads. . Susan Eng, vice president of advocacy at CARP said that the study shows the challenges CARP is doing to tackle.
“Not just do seniors don’t have enough money saved to fund their retirement However, when they do attempt to save for retirement, they’re usually susceptible to being targeted from financial advisers” said the woman who made the announcement. “They risk losing savings over the course of their lives, which is what worries our most.” The amount of Canadians working after the age of 65 has almost doubled over the last seven years. Today, there are more than 600,000 older adults still working in the workforce. Eng states that all the government at all levels should take steps to increase the number of the creation of registered pension plans, as well as stop financial predators that are targeting older people.
Are Bankruptcy filing required?
Insolvency can be an effective way to wipe out debt and increase the amount of money that is available to pay bills monthly. But, many senior citizens aren’t at ease filing for bankruptcy but it’s not always an ideal option.
Two scenarios render bankruptcy filing doubtful value to senior citizens:
- You don’t have any assets that you can’t take as a loan. Creditors aren’t permitted to get the things they need to keep a house including household items and a small car, Social Security funds, as well as a lot of retirement accounts. Since these are the majority of what older people have, many are “judgment evidence,” and therefore, filing for bankruptcy isn’t needed. However certain judgment-proof people apply for bankruptcy to stop creditors from calling and avoid the fear of losing the money in a bank account.
- There are too many assets that you can benefit from bankruptcy. If you own assets and earnings that aren’t secured from creditors, declaring bankruptcy may not be the best option. It’s likely that you’ll lose the property under Chapter 7. When you go to Chapter 13, you’d have to pay a substantial Chapter 13 repayment plan payment since you have to make a payment for any property that you’re not entitled to (but you could keep the property).
Learn about what bankruptcy can or cannot do to help increase your financial standing.