Canadians are feeling financially squeezed and have a hard time saving due to the high cost of living, according to a global survey conducted by an investment firm.
Money manager BlackRock Inc. released the Global Investor Pulse survey Thursday morning, which found 68 per cent of Canadians said the high cost of living was the biggest threat to their financial future. It also found that Canadians spend 43 per cent of their income on housing costs, including rent or mortgage plus utilities. That is the third highest percentage of the 20 countries that were a part of the survey, only behind the Netherlands (51 per cent) and Sweden (45 per cent).
As a result, Canadians only have 23 per cent or their income left to save and invest. The survey reports this percentage is among the lowest rates in the world.
"While Canadian seem to place a high priority on long-term planning, their short-term actions could hinder making these goals a reality," said BlackRock Canada Managing Director Noel Archard in a statement. "Concerns about debt and the cost of living, including housing are high in Canada, and that seems to have put many in a situation where they are not taking advantage of some relatively simple things, like maximizing their workplace pension plans."
Slightly more than half of Canadians, or 52 per cent, are optimistic about their financial future. However, that number is down from 55 per cent last year and below the global average of 56 per cent.
For the report, 27,500 investors from 20 countries were surveyed online in August, including 1,000 Canadian investors.
About six in ten Canadians report they are currently saving for retirement, but only three in 10 said they are well prepared. About a third of Canadians said they will never be able to retire and nearly half are scared they will outlive their retirement savings.
