The Canadian Payroll Association conducted an online survey of over 4,700 people representing a wide range of sectors across the country. It reveals that Canadians put little money aside.
Living from one paycheque to the next is daily life for half of Canadians. The Canadian Payroll Association survey found that 41% of the country’s employees spend their net pay, or even more, and 47% would find it difficult to meet their financial obligations if the cheque was delayed by one week. While financial planners advocate saving at least 10% of income, 42% of respondents set aside only 5% or less. One of the consequences is delayed retirement. 46% of respondents think they will have to work longer than they thought five years ago to compensate for this lack of savings.
A population in debt
Indebtedness has also worsened over the past year for 31% of Canadians and 35% feel overwhelmed by debts, to the point that 12% of respondents think that they will never be able to repay them in full. This is due to an increase in overall expenditure caused by the increase in the cost of living, for 35% of respondents, and unforeseen expenses for one quarter. Solutions include higher pay and reduced spending, 26% and 19% of respondents respectively say.