A third of respondents to a new survey say they are in ‘bad’ or ‘terrible’ financial shape
The extended run of challenging economic conditions is forcing more Canadians to tap savings accounts and other financial resources they try to avoid.
A new survey from Angus Reid Institute published today (Apr. 7) shows that two in five respondents have needed to use their emergency finances to make ends meet.
Additionally, more than one third have deferred payments to their RRSP or TFSA, and the cost of living has seen two thirds reducing discretionary spending, a rise of 14 percentage points from a year ago.
As well as tapping their ‘forbidden’ accounts, 43% reported delaying a major purchase, 13% have borrowed money from friends or family, 11% have sold assets, 8% have taken out a bank loan, and 4% have used payday loans.
Despite the surge in inflation and a 5.4% increase in wages year-over-year in February 2023, 45% of respondents say they have not been given increased compensation in the past year.
Worsening finances
More people are reporting that their finances are in ‘bad’ or ‘terrible’ shape too (more than one third), a six-point-increase from July 2022.
Although this is a more common response among those with a household income of $25K or less, it was stated by at least one in five from all income bands (except $200K+).
Food costs remain a considerable drain on household budgets and feeding the family is cited as a struggle for 80% of those who say their finances are in bad shape and 94% of those who say their finances are in terrible shape.
Not just younger
Although younger Canadians are more likely to have responded to the poll that they are struggling they are certainly not the only ones in trouble.
Those saying their finances are in bad shape by age group:
- 38% of 18-24
- 26% of 25-34
- 22% of 35-44
- 28% of 45-54
- 27% of 55-64
- 14% of 65+
Those saying their finances are in terrible shape by age group:
- 11% of 18-24
- 10% of 25-34
- 15% of 35-44
- 12% of 45-54
- 8% of 55-64
- 6% of 65+
