A new survey says the majority of working Canadians are living paycheque-to-paycheque and have little money to put aside for retirement.
The Canadian Payroll Association (CPA) survey says that 59 per cent of Canadians say they would have trouble paying their bills if their paycheque was delayed even by one week.
"We were shocked by that number. So many Canadians are now living so close to the line that if they miss a single paycheque, the majority will find themselves in financial difficulty," Janice MacLellan, chairman of the CPA, said in a news release.
Financial experts suggest that people have emergency savings to cover their expenses, such as rent and groceries, for at least three months.
Young people are the most vulnerable the survey says, with 45 per cent of those 18-34 saying it would be difficult or very difficult to make ends meet if a paycheque was delayed. An additional 21 per cent of that age group said it would be somewhat difficult.
By household, single parents are in the most difficult financial situation, with 72 per cent saying they are living paycheque-to-paycheque.
Additionally, the survey says about 50 per cent of Canadians are unable to save more than 5 per cent of their paycheque.
"Canadians are living paycheque to paycheque, and there's precious little left that they can put away for retirement," Patrick Culhane, CPA's President and CEO, said in a news release.
About a third of Canadians indicated they are trying to save more money due to the economic downturn but have not been successful in doing so. A whopping 42 per cent said they haven't tried to save additional cash.
Slightly more than 50 per cent of Canadians say they'll need between $750,000 and $3 million for retirement.
Despite the grim numbers, Canadians are optimistic as 66 per cent say the economy will improve and they believe they will receive a modest raise over the next year.
More than 2,800 workers in Canada participated in the survey, for a margin of error of 2.3 per cent, 19 times out of 20.
