Debt Troubles For Canada’s Elderly

A local trustee in bankruptcy is warning of tough times ahead for the baby-boomer generation.
Frank Fabiano is with Grant Thorton Limited, and says a lot of those born between 1945 and 1964 didn’t do enough saving when they were younger, and now they’re getting close to retirement age.
A study by the Bank of Montreal finds that 46% of Canadians aren’t confident that they have enough savings to retire.
Along with the baby-boomers, Fabiano says that seniors have it hard as well.
He says many seniors, specifically in Northwestern Ontario, have to deal with the fact that their children have moved away which makes it harder to call on them for assistance. In addition, many seniors rely on their Old Age Security and Canadian Pension Plan.
Fabiano says the problem is that some people are still living as if they were working, which leads to more money going out than coming in.
But if you’re worried about your debt load once you pass on, Fabiano is addressing some myths.
He says that if the debt is in the name of the person who has passed away, then the debt passes with them and it doesn’t get burdened onto children or any other loved ones. The only exception is if there are joint assets involved, such as a mortgage or car loan.