[xtypo_dropcap]T[/xtypo_dropcap]he majority of Canadian workers continue to live paycheque to paycheque, with 59 percent saying they would be in financial difficulty if their pay was delayed by even a week, a new national survey finds.
Workers are also concerned about how interest rates and the economy will affect their personal finances and retirement, according to the second annual National Payroll Week Employee Survey, conducted by the Canadian Payroll Association (CPA).
Although 62 percent of the 2,766 respondents anticipate a salary increase, 83 percent also expect an increase in their cost of living over the next year.
Forty-seven percent said they are saving only 5 percent or less of their net pay. Sixty percent had been trying to save more than a year ago, but over half were “unsuccessful.”
In light of the lack of savings, 61 percent hope to receive higher wages from their employers. But only 20 percent want their remuneration put to better retirement benefits, despite that 52 percent believe they will need between $750,000 and $3 million to live comfortably in retirement.
“The most significant result of Canadians continuing to live paycheque to paycheque is its impact on their concerns about personal finances and retirement,” said CPA chair Cindy Forget in a press release.
“The results also underscore why it is vital for organizations to ensure employees are paid on time.”
While 59 percent feel the economy in their city or town will improve in the next year, this was down from 67 percent in 2009. Workers in Ontario, Quebec, and the Atlantic provinces are less confident about their local economies.
“We’re surprised by the drop in optimism because last year’s survey was in the middle of the recession,” said CPA president and CEO Patrick Culhane.
The respondents said their greatest economic concerns ranked in order of importance are higher interest rates, inability to save for retirement, inflation, and a fall back into a recession.
Sixty-nine percent said that if they lost their job, it would be difficult to find similar employment with a similar salary, and 40 percent said it would probably take more than six months to find a comparable job.
The younger workforce, those aged between 18 and 34, are having the greatest trouble meeting their current expenses. By household, the situation is most precarious for single parents, with 76 percent saying they would have some trouble making ends meet if their pay were delayed—a 4 percent increase from last year.
Many are also worried about their debt, with 81 percent saying that if they won $1 million in the lottery, they would use the money to pay off their debt as their first or second priority. The second most popular option was buying a house (44 percent), followed by contributing to retirement (42 percent) and investing (35 percent).
Workers are also concerned about how interest rates and the economy will affect their personal finances and retirement, according to the second annual National Payroll Week Employee Survey, conducted by the Canadian Payroll Association (CPA).
Although 62 percent of the 2,766 respondents anticipate a salary increase, 83 percent also expect an increase in their cost of living over the next year.
Forty-seven percent said they are saving only 5 percent or less of their net pay. Sixty percent had been trying to save more than a year ago, but over half were “unsuccessful.”
In light of the lack of savings, 61 percent hope to receive higher wages from their employers. But only 20 percent want their remuneration put to better retirement benefits, despite that 52 percent believe they will need between $750,000 and $3 million to live comfortably in retirement.
“The most significant result of Canadians continuing to live paycheque to paycheque is its impact on their concerns about personal finances and retirement,” said CPA chair Cindy Forget in a press release.
“The results also underscore why it is vital for organizations to ensure employees are paid on time.”
While 59 percent feel the economy in their city or town will improve in the next year, this was down from 67 percent in 2009. Workers in Ontario, Quebec, and the Atlantic provinces are less confident about their local economies.
“We’re surprised by the drop in optimism because last year’s survey was in the middle of the recession,” said CPA president and CEO Patrick Culhane.
The respondents said their greatest economic concerns ranked in order of importance are higher interest rates, inability to save for retirement, inflation, and a fall back into a recession.
Sixty-nine percent said that if they lost their job, it would be difficult to find similar employment with a similar salary, and 40 percent said it would probably take more than six months to find a comparable job.
The younger workforce, those aged between 18 and 34, are having the greatest trouble meeting their current expenses. By household, the situation is most precarious for single parents, with 76 percent saying they would have some trouble making ends meet if their pay were delayed—a 4 percent increase from last year.
Many are also worried about their debt, with 81 percent saying that if they won $1 million in the lottery, they would use the money to pay off their debt as their first or second priority. The second most popular option was buying a house (44 percent), followed by contributing to retirement (42 percent) and investing (35 percent).
