| By :
Molly Wider
Due to the recession, freedom 65 may never get here. It seems for most people, even freedom 85 is not as probable as once expected. According to the Royal Bank of Canada, it seems 32% of Canadians have not even begun to save for retirement yet, according to a recent RBC poll. This is compared to 24% in 2008. They also found that only 36% of Canadians have even thought about or have planned for retirement, which is down from 42% the previous year. It seems the recession has inflicted many financial restrictions on Canadians and their living standards due to a high jobless rate, leaving less money for any type of saving or investment. These factors are also combined with the obvious high debt load the average person has, making investment savings near impossible. Another word of warning has been issued to Canadians about the upcoming increase in interest rates and that personal consumer debt should be carefully monitored. This comes after a year of historically low rates that have seen many Canadians borrow too much, extending loans they will later regret. The bank agrees that it is difficult for many Canadians to think about savings and retirement when personal finances are in such turmoil. Consumers will need professional advice on retirement strategies, especially in the current economic stage where programs such as health and corporate pensions plans have been cut because companies can no longer afford to extend them to employees. The RBC poll found the sharpest decline in retirement savings has been from those aged 55 and over as only 53% of that age group is saving, compared to 67% one year ago. It has also found that about 35% of Canadians have contributed to a plan or to an RRSP for the 2009 tax year, the lowest contribution rate since 1996. Fifty-four percent of the population who are not contributing to any type of retirement savings say that they are unable to do so due to current economic conditions. It is very difficult for people to try and balance out their financial situations especially if they're already behind and are feeling overwhelmed because of it. The ability to sit and clearly see the current picture becomes blurred, most people simply leave the situation get out of control. Consumers just do not know what to do or how the help themselves get back on track. Economists are suggesting Canadians seek expert advice. If you suffer from bad credit and are feeling the financial pressure, now is a good time to seek help. Even if you are suffering from bad credit there is help available. Private lending institutions specializing in bad credit loans and title loans could very well be the help you're looking for.
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