Close to half of Canadians and 50 per cent of Albertans are living paycheque to paycheque, making the road to comfortable retirement longer and more difficult.
That’s the finding of a new survey by the Canadian Payroll Association (CPA).
Nationally, only 36 per cent expect the economy to improve in the city or town they live in in the coming year.
But Albertans still have a high degree of optimism, with 45 per cent believing the local economy will improve – that’s among the highest in the country.
Edna Stack, past chair of the CPA board of directors, points to flat incomes combined with spending and debt as the reasons why so many are living week to week.
“Most people cite their mortgage or their rent as their number one payment and then after that it’s lines of credit and credit cards so it’s just too easy to get things,” she said.
She adds household incomes above $100,000 have barely increased in the past five years, and while wages have stayed the same, 42 per cent of Albertans say they now spend all or more than their net pay.
Forty-three per cent of Albertans feel overwhelmed by debt and a third say their debt level has increased this year.
Ninety-four per cent of us carry some form of debt, but perhaps most disappointing is that one in ten don’t think they’ll ever be debt free.
In fact, a quarter of Canadians say they couldn’t come up with $2,000 if an emergency popped up next month.
Sixty-two per cent of Albertans, much higher than anywhere else in the country, believe they will need at least $1-million to retire.
Stack points out 76 per cent say they’ve only saved about one-quarter or less of what they need.
“Freedom 55 is pretty well gone now,” she said. “A lot of people are expecting to work longer because of debt, so they’re now looking at well into their 60s before they think they’re going to be ready to pack it in.”
Despite all that, only 28 per cent of people say higher wages are their top priority.
Most say they’re more interested in a better work-life balance and a healthy work environment.
