We have to ask ourselves if there is hope for our seniors in debt. Many today are finding it difficult to live off their pensions. With the cost of living expenses, sometimes there isn’t enough money to go around. Many who are near retirement are worried that they just won’t be able to retire comfortably and may have to get part-time jobs.
Seniors are living longer. The average age expectancy for a female in Canada is 87; the average male is 84. In the U.S. the figures are females 81 and males 76.
Statistics Canada estimates that 25% of Canadians will be seniors by 2041 with those 85 and over leading the way.
In the U.S., the population aged 65 and over is projected to be 83.7 million in 2050.
It is projected that 16-22 percent of the world’s population, by 2050, will be seniors.
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Seniors in Debt
According to the Bank of Canada (May 2018), Canadian households owed more than 2.1 trillion dollars at the end of September, up 1.4 percent from the summer.
A 2017 report by Equifax Canada states that seniors are increasing their debt at a faster pace than other Canadians and according to Statistics Canada, 34% of retirees over 55 are still carrying debt.
One in three Canadian adults is not financially prepared for retirement (in Ontario, two-thirds feel they won’t have enough money to retire).
Here is another startling statistic: In Canada, according to the Broadbent Institute, 28% of single women seniors are living in poverty, and 24% of single senior males!
The picture isn’t any rosier in the U.S. Approximately 3.4 million seniors age 65 and older are living in poverty (American Progress Report).
How about this one: 23% of married retirees and 43% of single ones count on their social security for 90% of their income monthly.
According to a 2018 Planning and Progress Study, 78% of Americans are not financially ready for retirement; in fact, 1 in 3 has less than $5,000 in retirement savings and are seniors in debt.
How Seniors in Debt are Coping
So what are seniors in debt doing, especially those who have already retired?
Well, a lot of them are looking for part-time jobs to supplement their income and to live a bit more comfortably. Let’s take a look at some of these and why they may or may not be a good idea.
A couple of questions one might want to ask first:
- Am I prepared to work outside the home (after all you are retired or planning on retiring – do you still want to work for someone else?)
- Is the amount of money I earn very important – do you want a little extra income or a lot extra?
- Is working necessary or am I looking at the social aspect – do you need to be around people?
Let’s take a look at job opportunities outside the home, work-at-home jobs.
Jobs Available Outside the Home
These are just some examples – there are many more:
- Retail – department stores; small retail stores, cashier, part-time store manager/assistant manager
- Food industry – restaurants, coffee shops, chef, hospitality manager (waitressing, part-time management)
- Service industry – data entry, part-time work for a former employer, part-time secretary, chauffeur, taxi driver, teaching positions, accounting, dog walking, consulting
– Advantages:
- Know when and how much you will be paid
- Part of a team – not alone
- Be around other people
- Vacation
- Employee and health benefits
- On-the-job training/access to company resources
– Disadvantages:
For most of these positions, you will have to leave your home every day (or a few days a week) to perform your duties. Some disadvantages include:
- Car maintenance (gas and repairs) or public transportation
- Possible parking fees
- Lunches or meals out
- Having appropriate clothing
- There may not be an opportunity for advancement
- Pets at home – who will look after them?
- Less, or no job security
- Must follow rules and office policies
Will you be any further ahead?
Seniors in Debt Working from Home to Pay off Debts
Again, these are just a few examples:
- Writer/Author
- Proofreader/Editor
- Tutoring – this could be a wide range of interests (teaching students who need extra credits for example)
- Tax Preparer – for individuals/small businesses
- Beauty/Hair Salons – you would be flexible in setting up your own hours
- Accounting – keeping books for small companies
- Virtual assistant – big demand for this – detailed, organized, able to meet deadlines
- Online marketing (yes, you can make income from this)
– Advantages:
- Flexibility
- Can set own fees/prices
- More productive
- Less commuting
- No parking costs
- Control over your working environment
- Fewer distractions – you set the rules
– Disadvantages:
- Need to be very disciplined
- Must work without supervision
- May need to pay for additional training
- Being on your own – isolation
- Earnings may not be immediate
- May have to build up your clientele
- Irregular working hours
- Distractions
- May not have enough office equipment
Putting Technology to Use
It is interesting to note that Canadians aged 65 and over are turning to electronic gadgets to stay connected. Look at the following statistics:
- Internet use for 65 – 74-year-olds increased from 65% in 2013 to 81% in 2016!
- The four top devices seniors owned in 2016 were: desktop computers (46%); laptops or net-books (45%); tablets or e-readers (40%); and smartphones (34%).
- Seven out of 10 seniors stated that technology helped them to communicate with others.
Conclusion
With longer life expectancies, rising living expenses, and insufficient funds, many seniors are facing financial difficulties. This means looking at different ways to supplement their incomes and debt, such as part-time work or using technology. Seniors must look at their situations to find opportunities, using the resources available to them.