Article content
A new H&R Block Canada study found 74% of Canadians worry they’re not putting enough money into savings while 85% feel living pay cheque to pay cheque is the new norm.
Article content
The latter sentiment is up from 60% who said they felt that way in a similar H&R Block study from 2024.
The poll also found 78% are likely to put less into savings in 2025 and 66% worry about their future financial well-being as they’re not putting enough money aside.
The survey says 7% of pay cheques is the average amount put towards saving versus cited 20% rule of thumb, and 10% say their paycheque doesn’t even cover the cost of living.
The survey says only 18% report putting around 20% or more of their pay cheque into savings, while 21% report putting around 10% into savings, and 25% put around 5% of their paycheque into savings.
The poll says 62% feel they don’t have enough money left over from their pay cheque to build up their savings.
“While many Canadians hold a mix of tax-friendly savings accounts, it’s clear that Canadians are feeling the financial strain of not having enough money left from their paycheque to put into savings, given the high cost of living,” Yannick Lemay, a tax expert at H&R Block Canada, said in a statement.
Article content
“The good news is that 65% of Canadians expect a refund this year, up from 36% last year, of which a significant portion is likely due to investing in tax-friendly savings plans such as RRSPs.”
RECOMMENDED VIDEO
We apologize, but this video has failed to load.
Overall, 54% of Canadians feel good about their current personal financial situation compared to 46% who are not feeling positive.
And 51% say that despite making a decent salary it’s hard to make ends meet and 81% are concerned their income is not keeping pace with the cost of living.
The poll found 78% believed they’re likely going to have less to put into a savings account in 2025, given the high day-to-day cost-of-living.
The survey says 46% are unable to save money for long-term goals like retirement or a home, as their paycheque goes to their immediate needs, and 33% feel they may as well enjoy spending their money as buying a home feels out of reach for the foreseeable future.
The poll found 48% of Canadians rely on a credit card to make larger purchases rather than tap into their savings, and 17% instead rely on installment payment options including buy now pay later (BNPL).
The survey says 56% worry they’ll have to go into debt or use a credit card if an unexpected expense comes up rather than rely on their savings.
Share this article in your social network
