CHICAGO: Ten per cent of those who declared bankruptcy in 2014 were aged 65 and older. That’s a whopping 20.5 per cent increase from 2010.
One of the reasons is actually a plus — we’re living longer. “For many of us, we’re outliving our savings,” explains Nora Spinks with the Vanier Institute of the Family, a non-profit research organization.
Another driving force is that more seniors are retiring in the red. In 2012, 42.5 per cent of people aged 65 and over still had debt. That’s a stunning increase of 55 per cent since 1999.
A bankruptcy trustee blames the lingering debt largely on our addiction to low interest loans.
“If you’ve got decent credit, you can go out and get a mortgage for 2.5 per cent. So why not be buying the bigger house?” he says. “Today we don’t need to save because we all have a line of credit.”
But paying down debt in your senior years can be challenging on a fixed income. Throw in an unplanned setback like a financially needy adult child or a family illness and the bills can become crushing…