Seniors, Debt and the New Ontario Budget

Seniors are increasingly carrying more debt as they enter their retirement years and as the years accumulate, so does the amount of debt they owe. There are multiple reasons for this. First of all, the average lifespan is now much longer than it used to be, therefore seniors would have needed to accumulate more money in their working years to be able to live debt-free. Since it is impossible to redo the past or foresee the future, this is quite difficult to fix.

In addition to this, recent studies have shown that more and more Canadians are carrying a large portion of their mortgages into retirement. This poses a major problem for seniors, because there isn’t a sufficient amount of income coming in to compensate for these payments. This is one of the largest issues and often the hardest one to confront.

Something else to keep in mind – Ontario’s 2016 budget was revealed last week, with multiple changes made that will affect seniors. According to Ontario’s 2016 budget, those seniors who are in a higher income bracket will receive an increase in their annual deducible for the Ontario Public Drug Program. Specifically, these seniors should expect to pay a $70 increase, from $100 per year to $170, as well as an additional dollar more per claim.

There is some good news that comes along with this – although there will be an increase for these higher income earning seniors, the income threshold for this will be increased as well. As a result, more seniors will actually be paying less for their medications. Another part of the budget that will be affecting seniors is the cut to the Healthy Home Renovations Tax Credit.

Taking all of these factors into consideration is very important, however, it can be very overwhelming. Restructuring your finances and dealing with debt are very difficult to tackle independently. Therefore, it is important to seek professional advice from a licensed insolvency trustee.

Our team has extensive experience in addressing these issues so feel free to email or call us at 416 736 4357 (HELP) to book a free, no obligation consultation with one of our debt solutions’ experts. Make an appointment today, specifically tailored to your situation. We look forward to assisting.