Financial stress is increasing at home

Financial stress is increasing at home

Although the financial health of working Canadians is in better shape than last year, especially because of the impact of the pandemic on the savings trend, a survey conducted across the country found a significant increase in the number of people who are under financial stress.

While in 2019 the number of people saying they were “financially stressed” was 35%, that number reached 43% in 2020, according to the annual study of the Canadian Payroll Association (CPA) released on Monday. This represents an increase of 8% in one year.

The responses received also point to a growing gap between people “at ease” and those who “manage”: 22% of workers are in the first category, and 65% in the second.

But the ACP study revealed the paradoxical effect of the pandemic on the population.

Indeed, while the numbers show that Canadians are not necessarily in poorer financial condition, mainly because of lower spending, the increase in financial stress could be explained by a large uncertainty about the economic outlook in the medium and long term. long term.

“Whether through coercion or fear, not having to go to work, buy lunch or pay for child care has enabled 62% of Canadian workers to save more. of 5% of their pay, whereas they were only 59% to do it in 2019 ”, it is written in the report of the CPA.

However, pandemic forces, the specter of a recession has a definite impact.

“The percentage of worried Canadian workers has increased by 28% among those who are financially comfortable or are doing well, rising to 63% among the former and 73% among the latter. This same percentage rose from 47% to 66% among financially stressed workers. ”

This almost generalized uncertainty is also transforming the retirement outlook for financially stressed people: 52% of them said they questioned their ability to retire, against 45% last year, an increase of 7%.

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