A recent survey from the Canadian Payroll Association (CPA) sheds light on the current financial status of working Canadians in 2017.

One noticeable result from the survey suggests that almost half of employed Saskatchewanians are living paycheque to paycheque and find difficulty with putting a portion of their earnings into savings.

Moreover, 44 per cent of workers in Saskatchewan (47 per cent nationwide) report they would have a tough time meeting their financial obligations if their paycheque were to be postponed for an extra week.

In terms of spending on each paycheque, results show 37 per cent of workers in Saskatchewan are spending all or more than their net pay largely due to higher living costs. 30 per cent of the workforce are able to save 5 per cent or less of their earnings, and nearly one in four (24 per cent) admitted they could not even muster up $2,000 for an emergency expense.

Although, the province demonstrated the highest percentage of workers saving more than the recommended 10 per cent among the provinces (43 per cent).

Overall, the data indicates there is a pattern of higher spending and lower rates of saving money. Besides the higher living costs and an economy which is slowly growing, what other factors play a part in these results?

Well, according to the CPA's survey conclusion, debt levels continue to stay high among Canada's working population.

Nationwide, 94 per cent of participants in the survey said they carry debt with 42 per cent believing it will take more than 10 years to pay down their debt. The top four most common debt items were mortgages (28 per cent), car loans (18 per cent), credit cards (17 per cent), and lines of credit (17 per cent).

A bump in interest rates last week from Canada's banks did not help the cause either, a move which was expected to be made in October or November.

Higher spending and debt levels have a hefty effect on Canadians trying to retire as well.

46 per cent of working Canadians answered since they are unable to save enough of their earnings, they will have to work longer than they expected five years previous. The survey suggests the target age for retirement among Canadians has been pushed to 61, with 68 per cent of Saskatchewan participants mentioning they have saved only a quarter or less of what they will need to comfortably retire.

The CPA recommends residents attempt to save around 10 per cent of their net pay and direct it towards a retirement or savings account.

 

Twitter: @MoisesCanalesJr

Follow Country 104 (CKVX) and Classic Hits Radio (CFYM/CJYM) on Facebook.

Follow Country 104 (CKVX) and Classic Hits Radio (CJYM) on Twitter.