The majority of Canadians are living paycheque to paycheque and feeling even worse about their economic situation than they did one year ago at the height of the recession, according to the Canadian Payroll Association's National Payroll Week Employee Survey released Monday.
The survey found 47% of Canadians are saving only 5% or less of their net pay. Financial planning experts generally recommend a retirement savings rate of about 10%.
Younger workers were found to have the most trouble meeting their current expenses, with 65% of those aged 18 to 34 saying it would be very difficult, difficult or somewhat difficult for them to meet their current financial obligations if they missed even one paycheque.
Overall, 59% of Canadians said they would be in financial difficulty if their paycheque was delayed by even one week.
As for the general economy, 59% of respondents said they feel the economy in their city or town will improve in the next year -- down from 67% in 2009.
When asked to rank issues facing the economy and personal finances, employees across the country cited the greatest concerns as, in order, higher interest rates, not being able to save for retirement, inflation and falling back into a recession.
The survey of more than 2,766 Canadian employees, is consistent with a 95% confidence level and a margin of error of 1.86%, 19 times out of 20.
Also Monday, the Organization for Economic Co-operation and Development released a report on the Canadian economy that said record high debt levels have left many "vulnerable" if their mortgage rates rise along with interest rates.
