Tuesday, September 15, 2009

Survey Shows 59% Of Canadians Living Paycheque to Paycheque

Making Ends Meet Is Tough
For Many Canadians

According to the 2009 National Payroll Week Employee Survey, conducted by the Canadian Payroll Association (CPA) and released today, 59% of Canadian employees report they would have trouble making ends meet if their paycheque was delayed by even one week.

"We were shocked by that number. So many Canadians are now living so close to the line that if they miss a single paycheque, the majority will find themselves in financial difficulty," says Janice MacLellan, Chairman of the CPA.

Financial experts recommend that people keep emergency funds totaling approximately three months of expenses (rent, mortgage, bills, groceries, etc.).

By age group, the younger workforce is feeling the greatest pinch, with 45% of those aged 18-34 saying it would be difficult or very difficult for them to meet their current financial obligations if a paycheque were delayed, and a further 21% stating that it would be somewhat difficult. By household, the situation is most precarious for single parents, with 72% saying they would have some trouble making ends meet if their pay were delayed.

The survey also found that 50% of Canadian workers are unable to save more than 5% of their net pay for retirement. Financial experts generally recommend a retirement savings rate of about 10%.

"Canadians are living paycheque to paycheque, and there's precious little left that they can put away for retirement," notes Patrick Culhane, CPA's President and CEO.

Editor's Comment: We should realize that Canadian governments at ALL levels are also not putting any money ahead for a rainy day. In fact, all governments are already spending money from future generations to pay the bills today. Something seems wrong with this whole picture, don't you think?


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