Canadian families under financial stress

Despite signs of economic recovery, Canadian families are feeling financially insecure, says a study by the Vanier Institute.

The report, Current State of Canadian Family Finances, finds that many Canadian families are struggling to balance persistently high debt against modest savings and an often precarious income flow.

Younger an older members of Canadian families, in particular, are struggling with the effects of the recent recession, says the report. Youth are having difficulty scoring a spot in today’s job market, thanks in part to workers aged 55 and older claiming more than half the net jobs created since the the recession’s low point in 2009.

Yet, despite the increased number of older Canadians in the labour market, the study also reports an increase in the number of seniors declaring bankruptcy – seniors are 17 times more likely to become insolvent than they were 20 years ago.

Vanier Institute CEO Nora Spinks says, “More young people are living with their parents longer and staying in school longer,” said Nora Spinks, CEO of the Vanier Institute. “Grandparents are spending increasing amounts of time in the work force. Parents are stretched, often providing care and financial support to both young and old, while trying to plan and save for their own retirement.”