Seniors piling on debt faster than other groups

Many seniors were busy rackingup thousands of dollars in new debt in 2012, even as younger Canadianswere able to keep new borrowing to a minimum, according to a new study from TD Bank.

Economists at TD took data from an Ipsos Reid financial survey of 12,000 households and found that younger and middle-aged Canadians seemed to be paying attention to the many warnings about piling on debt.

Older Canadians, on the other hand, increased their debt load by an average of 15 per cent from the previous year. The extra debt, which amounted to an increase of more than$6,000, boosted the average debt load among the senior set to $47,549.

While that debt load is the smallest of any age group, seniors are considered to be more vulnerablebecause many are on fixed incomes.

"The updated figures add credence to the recent theme that Canadians are entering retirement more indebted than ever," the report said.

TD says seniors living in Ontario, Alberta and Quebec had the highest rates of debt accumulation in 2012. SeniorsinAtlantic Canada,Manitoba and Saskatchewan managed to reduce their debt levels.

The data suggest that younger Canadiansthose with the highest debt levels "appear to [be] heeding the Bank of Canadas warnings [about] taking on too much debt," according to the TD report, which was written by economists Craig Alexander and Diana Petramala.

For instance, among those aged 25 to 44, debt loads grew only fractionally in 2012.Those aged 45 to 64 actuallymanaged to paydowndebt for the first time sinceIpsos Reid began itsCanadian Financial Monitor surveyin 2002.

Statistics Canada says it's found that about one-third of retirees have debt. Among those 55 and over who are not yet retired, two-thirds are in debt. While half of retirees with debt owe less than $25,000, it found that about one-sixth of them say they're in hock to the tune of more than $100,000.