More than Half of Canadian Seniors are Worried about their Financial Future

Compared to this time last year, a majority (53 per cent) of Canadian seniors feel less secure about their financial future, according to a recent Angus Reid Strategies study commissioned by Canadian Home Income Plan (CHIP).

The national survey, which targeted Canadians 60 and over, is the first scientific poll to assess the mood of seniors since the economic downturn in the latter half of 2008.

In addition to concern over financial security, Angus Reid found that a significant number of respondents (37 per cent) who are not yet retired have been forced to delay retirement plans due to the current economic situation. Further, 44 per cent of Canadians over 60 are worried about their homes decreasing in value. This concern is felt most in the Maritimes (55 per cent) and in Ontario (52 per cent).

“While this study was conducted before the federal budget was delivered and is a reflection of considerable concern by seniors about their financial future, it’s encouraging to see that there are a number of measures in the federal budget that will help seniors manage their finances”, said Steven Ranson, President and CEO, Canadian Home Income Plan Corp.

“These measures include the changes to tax brackets, increase on the senior age credit, and the home renovation tax credit. While we believe that government action is certainly part of the solution, it is also up to private sector participants like CHIP to ensure that Canadian seniors continue to benefit from financial solutions that meet their needs,” added Ranson.

When it comes to the present state of the stock market, a considerable number of respondents (68 per cent) are concerned about investment losses in 2009. Forty-one per cent of those in the 60-65 age group said they are very
concerned about investment losses this year.

The poll also found that access to credit is a rising concern, with one-in-five Canadian seniors (21 per cent) worried about getting credit access, compared to this time last year. One in 10 respondents with a household income below $50,000 said they have sought more credit as a result of today’s economic climate.

The troubled economy has also led 15 per cent of seniors to consider downsizing or selling their home, according to Mario Canseco, vice-president of public affairs at Angus Reid. “Almost one-in-five respondents living in households with a yearly income of less than $50,000 are considering this as an option,” he said.

Canadian seniors indicated that the No. 1 financial challenge experienced by family members is cutting back on day-to-day spending (42 per cent), and among the 60-65 age group, 16 per cent have family members who have withdrawn money from savings and retirement accounts.

Additional Survey Highlights:

• Ontarians feel the least secure about their financial future compared to last year (57 per cent), followed by Atlantic Canadians (55 per cent)
• 15 per cent of respondents in Manitoba and Saskatchewan have sought more credit in light of the current economic situation
• Given today’s economic climate, 1 in 5 Canadian seniors aged 60-70 are concerned about getting credit approval
• More women than men are worried about home value depreciation (49 per cent vs. 38 per cent)
• Respondents from households with incomes of over $100K are most concerned (80 per cent) about investment losses in 2009
• Between provinces, B.C. residents are most likely to retire later (14 per cent), followed by Atlantic Canadians (13 per cent), as a result of the current economic situation

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