OTTAWA, March 22, 2012 /CNW/ - In its 13th annual review of the Current State of Canadian Family Finances, the Vanier Institute of the Family says that despite signs of continued economic recovery, for many families in Canada, income security is an elusive dream.
The report finds many Canadian families struggling to balance persistently high debt loads against modest savings and often precarious income flow. Bank of Canada Governor Mark Carney has described family debt as "the greatest risk to the domestic economy". For the 1.7 million Canadian families with a debt-service ratio of 40% or more, vulnerability to rising interest rates, consumer price increases or job loss is high.
Younger and older members of Canadian families, in particular, are struggling with the effects of the recession. Youth are finding it hard to get a toe-hold in today's job market while workers aged 55 and older have garnered over half the net jobs created since the low point of the recession in 2009.
And yet, despite their increased labour market participation, the Institute notes a dramatic increase in the number of seniors declaring bankruptcy, an incredible seventeen hundred percent rise over the last 20 years.
Vanier Institute CEO Nora Spinks says, "More young people are living with their parents longer and staying in school longer. 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."
For additional highlights or to download the entire report, go to: www.vanierinstitute.ca
For further information:
For interviews and more information on this report, please contact:
Nora Spinks, CEO,
Vanier Institute of the Family
(613) 228-8500 x214
Roger Sauvé, Report Author
President, People Patterns Consulting