An August 2013 report by Equifax Canada indicates an alarming trend in Canadian consumer debt, which increased by $77 billion (6.1%) during the second quarter relative to the same time last year. This increase was even greater for senior citizens over the age of 65, who as a group saw a 6.5% jump. The larger increase for seniors illustrates a growing trend of supporting post-retirement way of life via debt financing. Correspondingly, bankruptcy filings among seniors are also on the rise.

The effort to maintain pre-retirement lifestyle on lower post-retirement income is simply not sustainable, especially taking into account longer lifespans. Making up the gap by borrowing eventually leads to more financial strain. Overall, a sizeable proportion of the population is not prepared for retirement due to inadequate savings.

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