Angus Reid survey shows an abrupt end to a three year period of positive sentiment as the pandemic reality kicks in
There has been a sizeable amount of positivity around personal finances for most Canadians in recent years but things have changed as the pandemic has impacted earnings while debt has increased.
A sudden end to rising sentiment on personal finances has been discovered by a new survey from the Angus Reid Institute, published today (Sep.8).
In 2018, things were looking good for Canadian households. Almost one third of households felt that their standard of living would improve over the coming 12 months, up from 16% a year earlier.
But in the second quarter of 2020, this positivity took a 5 percentage point hit, while the share of respondents who anticipate worsening finances over the next 12 months grew to 20% - or 25% among those earning less than $25,000 per year.
Since 2016, the proportion of Canadians saying they’re financially better off now compared to twelve months prior had risen steadily year over year, from 12% to 24% halfway through 2020.
This trend has also ended.
In this quarter, 17% say things have improved over the past year, while 35% say they have worsened.
The most worrying stats are from Alberta - where 51% say they are worse off now – and in low-income households (income below $25K) where 47% report things are worse.
Looking ahead, those in Alberta and Saskatchewan are least optimistic of improvement while those in Ontario and Quebec are most optimistic.
Last week, the CMHC said that it has started to see a rise in claims for insured mortgage loans and expected a rise in defaults.
Higher income households more positive
The share of respondents who are optimistic that they will be better off a year from now (24%) was highest among wealthier households.
It was 28% for those with incomes of $100,000 to $149,000 and 29% for those with higher incomes than that.
