How would you fare if your paycheque was delayed by as little as a week?
Not very well, according to the Canadian Payroll Association, which put out it’s eighth annual Research Survey of Employed Canadians on Wednesday.
The survey found 48% rely on a regular paycheque to cover their bills and other expenses, while 40% admit they spend all or more of their net pay.
And a quarter of those asked said they wouldn’t be able to come up with $2,000 if an emergency situation suddenly popped up.
That number is about 20% in Ontario.
The survey also found about 50% of Canadians are only able to save 5% or less from their earnings.
Debt levels have risen over the last twelve months for 32% of Ontarians and 31% of national respondents. 11% nationally, and in Ontario, don’t believe they will ever be debt free.
The most commons types of debt for Canadians? Mortgage (26%), credit cards (18%), car loans (17%) and lines of credit (16%). 39% say they feel overwhelmed by all of it.
“A significant percentage of working Canadians carry debt, have a gloomy view of their local economy and are fearful of rising interest rates, inflation, and costs of living. In this time of uncertainty, people need to take control of their finances by saving more. ‘Paying Yourself First’ (by automatically directing at least 10% of net pay into a separate savings account or retirement plan) enables employees to exercise some control over their financial future.” -Patrick Culhane, the Canadian Payroll Association’s President and CEO.
“Survey data suggests that household income growth has stalled, as respondents reporting household income above $100K has hardly increased in five years,” s“In fact, real incomes have actually declined when inflation is taken into account.”– Alec Milne, Principal at research provider Framework Partners.
The CPA says the survey highlights the growing number of Canadians who are living paycheque to paycheque, and not able to build savings thanks to growing debt.