September 27, 2011
More BC boomers are expected to retired with higher debts!
INCREASING DEBT will be a retirement reality for many boomers, according to the Horizons Retirement Report, a survey commissioned by Rogers Group Financial.
Almost 40%, or four out of 10 Canadians expect to owe money when they retire, the survey found. One in six will have more than $50,000 in debt and one in 10 will hit 65 with more than $100,000 in debt. These are very large debts seniors have to deal with during their retirement.
High cost of housing
The statistics don't surprise Clay Gillespie, managing director of Rogers Group Financial, given increasing debt levels have become commoner among his clients in recent years. Many boomers rack up these debts when they take equity out of their houses so their kids can afford pricey Vancouver real estate!
Interest rates are at ultra low level at the moment, but a spike up in rates in the future by 1% or 2% will squeeze out the limited disposable incomes these boomers depend on to support their livestyles.
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