11 September 2017, 11:30
Photo : Freepik
According to the results of the ninth annual survey of thecanadian payroll Association (CPA), most of the employees of Quebec, and across Canada, are not doing better than before when it comes to planning for retirement.
Thus, 47 % of canadian workers who say they find it difficult to meet their financial obligations if their pay is delayed even one week. This proportion is even higher among millénariaux in the thirty (55 %) and generation X in midlife (51 %).
However, they are only 34 % to live from one paycheck to the other in Quebec, which is the lowest rate at the national level.
Unable to find 2 000 $ in a month
The survey also shows that nationally, 41% of employees spend their entire net pay, or even more (compared with 30% in Quebec). The main cause invoked to justify increased expenditure is the increase in the cost of living. In addition, 42 % of respondents (39% in Quebec) are saving 5 % or less of their income, which is lower than the 10 % usually recommended by financial planners.
To illustrate how some of the employees have their hands tied financially, with 22% of them would be unable to find 2 000 $ in a month to deal with an emergency. In Quebec, this percentage stood at 17 %. Again, this is the lowest level at the national level.
20 % of Quebecers feel crushed by debt
Although the level of indebtedness of canadian workers remains high, with only 20 % of Quebecers feel crushed by debt, while the national average is 35 %.
While nearly a third (31 %) of canadian respondents say their debt has increased over the past year, only one-quarter (24 %) of employees quebecers say they are in the same situation. At the national level, the proportion of those who believe that the repayment of their debts will take more than 10 years has climbed to 42 % (compared to 36% in 2016), and a good 12 % feel they will never succeed in being debt-free.
94% of Canadians say they are indebted
Finally, as in past years, 94% of Canadians say they are indebted. Debts the most common are the mortgage loan (28 %), credit cards (17 %), auto loan (18 %) and the credit margin (17 %). Not surprisingly, because of the high price of properties in some regions, more respondents than ever before (32 %) have difficulty repaying the mortgage on their principal residence.
«Even though Quebec is faring better, in many aspects, it remains important to spend less and save more every day, in case of any emergencies and retirement,» says Janice MacLellan, vice-president of operations at the canadian payroll Association. The survey results also show that it is very difficult for people to change their habits of consumption. Pay yourself first with an automatic dues on the pay allows you to divert money to a savings account or retirement plan before being submitted to the temptation to spend it. «