A majority of Ontarians are living too close to the line, according to a report released by the Canadian Payroll Association.
The report, released last week, shows that Ontario has the second highest percentage of people living paycheque to paycheque in the country, at 60 percent, after the Atlantic provinces with 64 percent. Nationally the figure is at 57 percent.
The fact that the majority of people do not have enough left over to save is one of the major causes resulting in a significant portion of the population having to retire later than they originally planned, the report says.
According to the report, based on an online survey of over 2,000 workers across Canada, 40 percent of Canadians expect to postpone their retirement plans. Ontarians top the list with 43 percent.
Sean Lyons, an associate professor of business at the University of Guelph, says the survey findings do not surprise him.
“The past three generations of Canadians have been raised to be consumers, rather than savers,” Lyons says.
“If you think about some of the everyday living expenses that the average person has now, cable, Internet, cellphone, wireless data, etc., these costs add quite a bit to a person’s expenses every month.”
Add to that the rising living expenses, increased levels of educational debts, and fluctuations in the stock market, and it’s not surprising that many people are living “hand-to-mouth” and give saving last priority, Lyons says.
“This is the nature of the modern lifestyle, buy now, pay later.”
Frank Wiginton, certified financial planner and author of the upcoming book “How To Eat An Elephant–One Day a Month to Financial Success,” says there are a variety of reasons why so many people are living paycheque to paycheque.
“Some of the reasons include trying to ‘keep up with the Jones’ by living beyond their means rather than being satisfied with what they have,” he says.
“Or maybe it’s the easy access to credit that only perpetuates the overspending.”
Wiginton says people can help their financial situation by preparing a good budget plan and spending only 90 percent of their income.
They would also be wise to identify where their money is going and prioritize and focus on what is important to them while cutting out “superficial wants.”
In addition, he recommends that individuals set up pre-authorized contributions so that saving is done “before you can spend it,” and become more educated about financial planning by reading books or working with professionals.
The report, released last week, shows that Ontario has the second highest percentage of people living paycheque to paycheque in the country, at 60 percent, after the Atlantic provinces with 64 percent. Nationally the figure is at 57 percent.
The fact that the majority of people do not have enough left over to save is one of the major causes resulting in a significant portion of the population having to retire later than they originally planned, the report says.
According to the report, based on an online survey of over 2,000 workers across Canada, 40 percent of Canadians expect to postpone their retirement plans. Ontarians top the list with 43 percent.
Sean Lyons, an associate professor of business at the University of Guelph, says the survey findings do not surprise him.
“The past three generations of Canadians have been raised to be consumers, rather than savers,” Lyons says.
“If you think about some of the everyday living expenses that the average person has now, cable, Internet, cellphone, wireless data, etc., these costs add quite a bit to a person’s expenses every month.”
Add to that the rising living expenses, increased levels of educational debts, and fluctuations in the stock market, and it’s not surprising that many people are living “hand-to-mouth” and give saving last priority, Lyons says.
“This is the nature of the modern lifestyle, buy now, pay later.”
Frank Wiginton, certified financial planner and author of the upcoming book “How To Eat An Elephant–One Day a Month to Financial Success,” says there are a variety of reasons why so many people are living paycheque to paycheque.
“Some of the reasons include trying to ‘keep up with the Jones’ by living beyond their means rather than being satisfied with what they have,” he says.
“Or maybe it’s the easy access to credit that only perpetuates the overspending.”
Wiginton says people can help their financial situation by preparing a good budget plan and spending only 90 percent of their income.
They would also be wise to identify where their money is going and prioritize and focus on what is important to them while cutting out “superficial wants.”
In addition, he recommends that individuals set up pre-authorized contributions so that saving is done “before you can spend it,” and become more educated about financial planning by reading books or working with professionals.
