Canada's Housing Bubble

Sep 13, 2010 CBC News

Almost 60 per cent of Canadians live paycheque to paycheque and say they'd be in financial difficulty if their paycheque were a week late.

A new survey from the Canadian Payroll Association released Monday showed some troubling signs about Canadians' personal finances.

The 59 per cent figure is the same rate as the one found in last year's survey. It is the second year that the agency has undertaken the payroll survey.

Almost half of respondents to a national survey said they are saving five per cent or less of their income. Financial planning experts generally recommend a retirement savings rate of about 10 per cent of net pay and hoard three months' worth of expenses in an emergency fund.

Although they don't appear to be having much success doing so, 60 per cent of respondents said they were trying to save more money than they used to. The remaining 40 per cent said they were not trying to save any money.

"The most significant result of Canadians continuing to live paycheque to paycheque is its impact on their concerns about personal finances and retirement," CPA chair Cindy Forget said.