Running out of money tops financial fears for seniors: report

Running out of money before they die and not having enough to pay for long-term care are the most common financial fears among seniors, says a report by the Financial Planning Standards Council (FPSC) and Credit Canada.

The “Seniors and Money Report” surveyed 1,000 Canadians aged 60 and over about debt, income, financial planning and work.

The report found the following:

• One in four seniors fear they will run out of money before they die.
• The same number fear they won’t be able to pay for long-term care.
• Almost three-quarters are more likely to rely on government income (such as CPP, OAS and GIS) than other income.

Read: Does your elderly client need dispute resolution?

Continuing to work

One in five of those surveyed continue to work past the age of 60, while 6% of those over 80 are still working. The reasons for working are varied:

• Three in 10 can’t afford to retire (including 13% who say they’ll never be able to afford to).
• Almost 33% continue to work because they love their jobs.
• More than 12% are carrying too much debt.
• 28% don’t have enough savings.
• 12% are helping their children financially.

Ongoing debt

More than half (56%) of those polled carry debt: credit card debt is the most common, followed by lines of credit, mortgage debt and auto loans. Among those over 80, 35% carry at least one form of debt.

Decrease in company pension plans

The report shows the beginning of a generational change in seniors’ incomes. Half of those aged 80 and older have a company pension plan as income. However, only 41% of those aged 60 to 69 have pension plans.

The full report can be read here.

Also read:

Advisors should discuss guaranteed lifetime income with clients: survey

Help clients design end-of-life plans