In the latest edition of the Canadian Payroll Association’s annual survey, a staggering 72% of Canadians said that they have managed to save only one-quarter or less of the retirement stash that they need.
The study also found that 43% of those polled have resigned themselves to the fact that it will take them as much as 10 years to pay off their debts. This was a significant increase from the 36% in 2016.
“We are hearing from Canadians who are carrying an average debt load of $30,000 – people are feeling the stress of today’s debt and wondering how they will cope with higher rates in the future and the possibility of higher unemployment as a result of a drawn-out trade war,” Credit Counselling Society president Scott Hannah stated.
Canadians attributed their overall debt loads to higher living costs (27%) and unexpected expenses (20%).
Fully 40% of working Canadians said that they are overwhelmed by the sheer weight of their financial accountabilities, increasing from 35% last year. Meanwhile, 34% stated that their total dues have grown over the year, up from 31% in 2017.
“Unfortunately, we’ve been seeing these financial trends for a number of years now, and I can’t stress enough the importance of tracking your spending, establishing a budget, creating an emergency fund and finding ways to pay down your debt,” Hannah added.
“While Canadians can’t control interest rates or the economy, they have the ability to take positive steps to improve their financial wellbeing while the rates are still relatively low.”