Senior’s Housing in BC (SAFER) and Cost of Living

The continuing upwards pressure on the cost of living in BC has caused the most grief to seniors on fixed pension income or if your income is modest. Inflation has pushed the cost of groceries and rent higher and higher to the point where people are missing meals or living in poor or dangerous living conditions. Seniors on fixed income pensions can be especially vulnerable to these cost changes. In this blog, we will take a look at Seniors Housing in BC.

 Rent as a Percentage of Income

For many years rentals were not difficult to find. A smallish apartment could be acquired for an amount that fits into the monthly budget. Since the covid pandemic, affordable senior housing in BC has become much more of a challenge.

In the good old days, having a rent cost below 33% of your monthly income was ideal. That left adequate funds for food, transportation, and living. Now, with the cost of senior housing well above 50% of income, life is very difficult.

During our financial counseling sessions, we always encourage people to also factor in the cost of utilities when deciding whether to apply for senior housing. Some places require you to pay it separately while some others have utilities included. This can make a huge difference.

How to Decrease Your Rent Cost

Is this even possible? Here are some ideas:

• Downsize by finding a smaller place – sometimes we see people in a housing situation where the size of the unit or house is just too big. In this setting there may be an opportunity to shop around for a smaller, possibly more efficient unit.
• Take in another renter – this is a sensitive topic as having a stranger rent a room in your residence has the potential to be very bad. However, with the right person, it could also provide a welcomed new revenue source. It is very important to vet any new tenant thoroughly to help ensure there will be no problems.
• Move in with your kids – if you are fortunate enough to have kids, they may be in a position where they could provide a senior housing option. That could be in a basement suite or possibly another building on their property. All of sudden there is free child care!
• Apply for seniors housing – over the years, many different organizations have developed low income senior housing developments that allow for a subsidized below market rent. Often, there is a waitlist to secure a spot. If you think this might work for you then the sooner you are on the waitlist the better.
• See if you qualify for SAFER – this senior housing assistance program provides a monthly cheque to help with rent. See below.

Does the Provincial Government of BC Provide Any Help?

Yes, the Province of BC does provide rental help, but not in the form of government housing. The Province has a program referred to as SAFER which stands for Shelter Aid for Elderly Renters.

There are several factors which determine your eligibility for this assistance:

• You file an annual tax return
• Your monthly income is less than $3,333
• You are 60 years or older
• You have lived in BC for 12 months
• You pay more than 30% of your monthly income towards rent
• You are a Canadian citizen

When we meet with seniors to discuss their challenges with debt, we sometimes notice that they are paying a huge portion of their monthly income to rent. In these cases, we suggest they contact SAFER to see if they qualify. You can reach them at 1-800-257-7756 or 604-433-2218.

If you qualify, the monthly amount you receive is a function of your annual income.

What if a Person Also Has a lot of Debt?

If you are a senior, or you know someone who is, and they are struggling with their rent and other finances, it may be due to the debt load that they are carrying. The combination of rising rents and living costs in general, combined with a debt load is a no win situation.

Fortunately, Federal Government programs exist that can provide some relief in respect to the debts. Many seniors feel an obligation to pay back the money that they borrowed; however, the high interest rates that credit cards and some other lenders charge can make it impossible. A Consumer Proposal is a Federal Government program that offers a manageable way to consolidate those debts.

A Consumer Proposal has several attractive features:

1. No interest on the unsecured debt once the program is in place.
2. A “stay of proceedings” meaning that the creditors are not paid directly and they are not allowed to collect from you.
3. The ability to pay back only a percentage on the dollar payable over time.

A Consumer Proposal must be filed through a Licensed Insolvency Trustee office.

If the monthly payment required in a Consumer Proposal is still too high then a bankruptcy filing may be a better choice. This is also a Federal Government program that is designed to help the honest but unfortunate person get financial relief.

For many retirees, once the debt problem is gone, finding safe housing for seniors becomes more practical.

Conclusion

Safe housing for seniors in BC and the other costs of living are no joke. The price of a bag of groceries, rent, and other necessities has risen dramatically. If you are on a fixed income, this cost of living increase may have been enough to push your budget into the red every month.

For some people, making changes within their budget will be enough. For others, especially if you are in debt, you may need some help in order to free up the monthly cash needed just to live.

Some people will be able to qualify for a debt consolidation loan via a bank and be able to manage the future payments. Other people may need to access a lower payment plan by way of a Consumer Proposal or a Bankruptcy.

We would recommend that you take advantage of our free initial consultation and contact us to set up an appointment where we can discuss your specific situation. This will ensure you have all the information you need to make a good choice. There is no referral required, feel free to contact us today.