Majority of Canadian employees living paycheque to paycheque, survey shows
TORONTO – Nearly 60 per cent of Canadians would have trouble paying the bills if their paycheque was delayed by one week, a new polls suggests.
The Canadian Payroll Association survey says not only are the majority of Canadians living paycheque-to-paycheque, but they have little ability to put money away for their retirement. The survey, released Monday, said 59 per cent of Canadians would have trouble making ends meet if they missed a paycheque.
“We were surprised that people were that close to the line,” said Patrick Culhane, president and CEO of the not-for-profit association.
Culhane said those results are despite the common advice from financial planners that people should set aside three months of expenses for such items as rent, groceries and monthly bills, in case of an emergency.
Of those surveyed, the younger workforce felt the greatest pinch. The survey said 45 per cent of people aged 18-to-34 would be difficult or very difficult to make ends meet if a paycheque were delayed. Another 21 per cent in that age group said it would be somewhat difficult.
Not surprisingly, 72 per cent of single parents said missing a paycheque would cause a problem for meeting financial obligations.
The survey also found that 50 per cent of Canadian workers can’t save more than five per cent of their net pay for retirement, half of what financial experts often recommend.
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