A new study by the Angus Reid Institute paints a grim picture of the average Canadians savings plan.
The report indicates that for every dollar of disposable income in Canada, Canadians owe roughly $1.78 to creditors. Collectively, Canadians hold more than $2 trillion in debt, and the Angus Reid Institute suggests the debt is causing notable financial strain for almost half the people in this country.
The study, conducted in partnership with The Globe and Mail, finds one-in-three Canadians have put off saving for retirement because of the debt they’re carrying. Millions more – especially those under the age of 40 – have put off buying a home, getting married, having children or moving out of their parents’ homes.
On the savings side of the ledger, just 12 per cent of Canadians say they have an amount in the bank that meets or exceeds their personal goal.
Against this backdrop, most Canadians say they feel stressed about money, while younger Canadians voice concerns about their ability to find and keep good jobs.
That said, members of Canada’s Millennial generation are much less pessimistic when looking toward retirement. On average, the youngest Canadians expect to retire earlier and live better in retirement than their elders do. This, despite relatively few young Canadians reporting significant current savings.
