Recent Survey Shows One in three Canadians in ‘Terrible’ Financial Shape
According to a recent survey conducted by the Angus Reid Institute, one in three Canadians are facing financial struggles due to the high cost of living. The survey involved 1,600 Canadians and revealed that 34% of Canadians are in “bad” or “terrible” financial shape, an increase of six percentage points from last July. In comparison, 27% of Canadians reported poor financial health in April 2020, when lockdown measures were put in place to reduce the spread of COVID-19.
The survey also found that food inflation has remained high, hovering around 10% year-over-year; for about 18 months now, around half of Canadians have also said that feeding their households has been difficult.
More than half of Canadians earning less than $50,000 per year reported poor financial health. The rising cost of living has resulted in 67% of Canadians reducing their discretionary spending. Furthermore, as many as 40% have withdrawn money from accounts they do not typically use. Thirty-five percent of respondents delayed contributing to their Registered Retirement Savings Plans and Tax-Free Savings Accounts, and 13% borrowed money from family or friends. Meanwhile, 43% of Canadians have postponed significant purchases, such as homes, cars, or large appliances. Eleven percent sold an asset, such as a vehicle or stocks, and 8% took out a bank loan.
Despite average hourly wages increasing by 5.4% in February compared to a year earlier, 45% of Canadians reported no additional compensation from their employers in the previous 12 months. This was higher among part-time workers, with 65% reporting no raise, compared to 42% of full-time workers. Workers in sales, retail, and hospitality were the least likely to have received a raise, while managers and executives were the most likely.
The Angus Reid Institute conducted an online survey from March 30 to 31, 2023, among a representative randomized sample of 1,600 Canadian adults who are members of Angus Reid Forum. For comparison purposes only, a probability sample of this size would carry a margin of error of plus or minus two percentage points, 19 times out of 20. Discrepancies in or between totals are due to rounding. The survey was self-commissioned and paid for by Angus Reid Institute.
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