Majority of Canadians living paycheque to paycheque: survey

TORONTO – While Canada continues to churn out mixed recession recovery data, a new employee survey paints a decidedly bleak picture of the wealth and savings of most Canadians.

According to a survey released Thursday by the Canadian Payroll Association (CPA), most Canadians are living paycheque to paycheque, with 57 per cent saying they would be in dire financial straits if their pay was delayed by as little as one week.

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Even more worrying, a majority of Canadians surveyed aren’t saving nearly as much as they need to for retirement, with 40 per cent saying they’ll have to retire later in life than previously planned.

Almost three-quarters of employees polled said they have only saved a quarter of the amount intended for their retirement.

“This is particularly troubling when you realize that even the older age groups are not saving for their retirement,” states Dianne Winsor, chairman of the CPA.

According to the survey, half of employees nationwide are only saving five per cent or less of their net pay. Financial experts generally recommend a retirement savings rate of ten per cent of an employee’s net pay.

To review the survey, Golden Years Postponed, visit the CPA’s website, www.payroll.ca.