Findings from a survey carried out in September by the Canadian Payroll Association include 41% of employees spend all or more of their net pay as higher living costs bite.
A delay in being paid of just one week would mean 47% of respondents would struggle to pay their bills with a larger share of those in their 30s (55%) and 40s (51%).
Over a third of working Canadians feels overwhelmed by their debts and 31% saying they have increased their debt load over the past year; 42% say it will take at least 10 years for them to pay down their debts.
Mortgages continue to be the largest share (28%) of debt type among the 94% of respondents with debt; 18% have car loans while 17% have credit cards and the same share have lines of credit.
“These results underscore the need for spending less and saving more every day, for emergencies and for retirement,” says Janice MacLellan, the Canadian Payroll Association’s Vice-President of Operations. “They also show that it is very difficult for people to change or reduce their spending patterns.
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New research highlights the high levels of financial stress faced by millions of working Canadians who are struggling to save for retirement and live paycheque to paycheque.