Apr 6, 2023
Canadians turning to savings accounts to cope with high living costs: Survey
The big concern now is on the wage side; we need it to come back down: Chief economist
The sky-high cost of living is pushing Canadians to draw on their savings accounts, or borrow money, in order to make ends meet, an Angus Reid Institute survey released on Thursday revealed.
Roughly 40 per cent of survey respondents said they’ve had to take out money from accounts they normally wouldn’t touch in order to keep up with inflation, while 35 per cent said they’ve had to defer their RRSP or TFSA contributions to have enough, the report said.
Others have had to go so far as to resort to family and friends (13 per cent), selling their assets (11 per cent) or seeking a bank loan (eight per cent) to cover living costs.
Respondents also reported that they are continuing to cut back on discretionary spending as two-thirds of Canadians continue to resort to belt-tightening measures – 14 points higher than reported this time last year, the report said.
Despite the federal government announcing some relief plans in its latest budget, which included measures such as a one-time grocery rebate for those eligible, the report stated persistent income challenges remain.
Nearly half of Canadian workers (45 per cent) stated they have not received additional compensation from their employer in the past year to help offset the rising costs.
Methodology: The Angus Reid Institute conducted an online survey from March 30- 31. 2023, among a representative randomized sample of 1,600 Canadian adults who are members of Angus Reid Forum.