In Search of “The Middle Class”: Canadians Under Financial Stress Research Report • November 2014 Methodology •  Survey results cited in this report are from interviews with an online representa6ve, random sample of 1,003 Canadians conducted between November 3rd and 5th, 2014. •  The margin of error for a probability sample of this size is ± 3.1%, 19 6mes out of 20. The margin of error will be larger for subpopula6ons. Number of interviews Margin of error Atlan6c Canada 100 ± 9.8% Quebec 200 ± 6.9% Ontario 302 ± 5.6% Prairies (Manitoba & Saskatchewan) 101 ± 9.7% Alberta 150 ± 8.0% Bri6sh Columbia 150 ± 8.0% 1,003 ± 3.1% Region Canada •  Data has been weighted by region, age, and gender, based on the most recent Census figures, so that it is representa6ve of all adult Canadians. 2
Half Of Canadians Self IdenIfy As Middle Class •  Thinking of both their social and financial place in society, half of Canadians iden6fy themselves as part of the middle class (52%); one-­‐
third (36%) consider themselves working class, and one in ten (9%) poor. Only (3%) iden6fy themselves as upper class. •  Quebecers are more likely to view themselves as in the middle class (73%), diverging from the norm in the rest of Canada. •  Men likewise tend to view themselves as more middle class than women (57% versus 47%). •  Self-­‐iden6fica6on as middle class by vote: 55% of Liberal Voters, 63% of Conserva6ves, 53% of NDP’ers, and 41% of Green Voters. Poor An obvious income paHern demonstrates itself, as income increases, so does likelihood to self idenIfy as middle or upper class. SIll, some upper income households idenIfy as poor or working class and more upper income households idenIfy as middle class vs. upper class 9% Working class 36% !
!
Middle class 52% Poor!
Working!class!
Middle!class!
Upper!class!
<$20K!
63%!
23%!
14%!
0%!
INCOME!!
$20K!-! $60K!-!
$100K+!
<$60K! <$100K!
11%!
1%!
2%!
55%!
31%!
14%!
34%!
67%!
74%!
0%!
1%!
10%!
Upper class 3% •  52% of self-­‐iden6fied middle class Canadians are employed full 6me. •  60% are parents. •  82% are homeowners Q2: Thinking about both your social and financial place in society, which of the following would you say best describes you and your household? Base: Total Sample (n=1003) 3
Key Findings 4
Key Findings Most Canadians Self IdenIfy As Middle Or Working Class •  Thinking of their financial and social situa6on, half of Canadians self-­‐iden6fy as “middle class” and another third as “working class”. More people iden6fy as “poor” (1 in 10) than as “upper class”. •  Quebecers are par6cularly apt to feel this way, with three-­‐quarters considering themselves middle class. •  As one would expect, middle income households are most likely to self-­‐iden6fy as middle class, but s6ll a substan6al three-­‐quarters of households with an annual household income of $100,000 or more consider themselves middle class. Indeed, just one in ten Canadians from this higher income bracket consider themselves upper class, which may speak to the financial strain the express throughout the study. Canadians Are Experiencing Financial Strain… •  Personal finances are the top issue facing Canadians today, men6oned on an unaided basis by one in three. This number climbs to one in two among young adults as well as among lower income households. Today, just one in ten Canadians feel financially secure and among the middle class, only 7% feel financially secure. In fact, only one in five Canadians from upper income households feel financially secure. Most Canadians (53%) are falling behind or just gegng by with no savings. This outlook is beher for middle class Canadians , but s6ll one-­‐third feel they are falling behind or can’t get ahead. •  Asked to reflect on their personal situa6on versus that of their parents, Canadians are split. Half feel they are beher off than their parents were, while half feel they are worse off. •  Older Canadians, the so-­‐called Silent Genera6on, of course, are more likely to feel beher off than their parents. Interes6ngly, men are also more likely to feel this way. •  But, residents of both of Canada’s coasts – Bri6sh Columbia and Atlan6c Canada– are more likely to feel worse off than their parents. Those who self-­‐iden6fy as poor or as working class are also more likely to feel worse off than their parents, again sugges6ng a difficulty in gegng ahead. 5
Key Findings cont. And, Their Outlook Is Grim •  Most Canadians express concern about the cost of healthcare for their family as they get older and of having enough savings for re6rement. Similarly, a majority of parents are worried about paying for their kids’ educa6on and about their adult children finding work in their field. Just half of unemployed Canadians are op6mis6c about finding work. Employed Canadians’ agtudes are equally depressed with eight in ten saying that their salary has not increased to the same degree as the cost of living and just four in ten confident that they’ll be promoted at work. •  Only half of Canadians think hard work is the key to moving up, with an outstanding 80% of those who self-­‐iden6fy as poor disagreeing with the no6on that working hard will help them move beyond their current socio-­‐economic class. This pessimism is also apparent in Canadians’ views about the future of Canada’s middle class with less than half of Canadians saying they are op6mis6c, or one-­‐quarter of the poor. Income Inequality Is An Important Social Issue And Personal Financial Pain Points Should Be A Top Priority For Canadian Government •  The vast majority of Canadians feel that income inequality is an important public issue and that income inequality is no longer about the gap between the rich and the poor, but rather the rich and everyone else. Canadians rank healthcare costs, the na6onal economy, and re6rement security as the top priori6es for our federal government. 6
Detailed Findings Pocketbook Issues Top Concerns Of Canadian Families •  Pocketbook issues – money, finance, incomes -­‐ are the most per6nent issues for Canadian families, volunteered by 3 in 10. This is followed by finding employment, health, and the general economy (1 in 10 each). Educa6on and its affordability (8%), as well as taxes (7%) follow. Money/finances/income Employment/unemployment/finding a job Health Economy Educa6on/affordable educa6on/educa6on costs Taxes/high taxes Other personal/family situa6on comments Environment/global warming/climate change Healthcare Re6rement/cost of re6ring/pensions Other current issues/social issues comments Housing/affordable housing/housing costs Cost of living/rising cost of living None Cost of food/grocery prices Other miscellaneous comments Governmental/poli6cal issues/topics Crime/crime levels/safety/security Cost of u6li6es/electricity/water/hydro Debt Social/disability services Cost of gas/fuel prices Other financial comments Infla6on/value of the Canadian dollar Bills 11% 11% 10% 8% 7% 6% 6% 6% 6% 5% 5% 5% 4% 4% 3% 3% 3% 3% 3% 2% 2% 2% 2% 2% 29% •  Women are more concerned about pocketbook issues than men (32% vs 25%). •  Young adults are significantly more concerned (52%). •  While, concern decreases with annual household income, it is sIll the top menIoned concern for many: 46% concerned among those with annual household income <$20K, 30% $20K-­‐<
$60K, 31% $60K-­‐<$100K, 17% $100K+. Q1: What are the biggest issues for you and your family these days? Base: Total Sample (n=1003) 8
Only One-­‐In-­‐Ten Canadians Feel Financially Secure •  Financially speaking, Canadians are falling behind or just gegng by with no savings for the most part (53%), with fewer gegng ahead with some savings (37%). One in ten each meanwhile consider themselves financially secure (10%). •  Those who self-­‐iden6fy as middle class fare only slightly beher, with one in seven (14%) feeling financially secure. Financially secure 10% 14% Gegng ahead, with some savings 37% 45% Just gegng by, with no savings Falling behind on your monthly expenses Again, while outlook improves as household income increases, even many of those in the upper income brackets are feeling financial strain. 55% !
!
29% 8% 3% Canadians Falling!behind!on!your!monthly!
expenses!
Just!getting!by,!with!no!savings!
Getting!ahead,!with!some!savings!
Financially!secure!
INCOME!!
$20K!-! $60K!-!
<$20K!
$100K+!
<$60K! <$100K!
26%!
10%!
5%!
2%!
62%!
8%!
4%!
56%!
30%!
4%!
43%!
42%!
10%!
24%!
54%!
20%!
The "Middle Class" Q3: Thinking about the cost of living and your personal financial situaIon, are you currently... Base: Total Sample (n=1003) 9
Half Of Canadians Feel They Are In A Be^er Place, Financially, Than Their Parents Were; While Half Feel Worse Off •  Canadians are split on their parents’ I am financially [SPLIT SAMPLE: be^er off] than my parents were 16% 35% 33% 17% 51% genera6on – 51% believe they are financially beher off than their parents were, 49% believe they are worse off than their parents were. •  Unsurprisingly, those over the age of 65 overwhelmingly agree they were financially beher off than their parents (75%). •  Men (60%) are more likely than women (42%) to consider themselves beher off than their parents. •  Middle (57%) and upper (74%) class I am financially [SPLIT SAMPLE: worse off] than my parents were 18% 31% 38% 13% 49% Canadians are more likely to feel beher off than their parents than are those who iden6fy as poor (23%) or working class (47%). •  Regionally, Bri6sh Columbians (42%) Strongly agree Somewhat agree Somewhat disagree Strongly disagree and Atlan6c Canadians (33%) are the least likely to feel beher off than their parents. Q4: How strongly do you agree or disagree with each of the following statements? Base: Total Sample (n=1003) 10
Canadians Are Not ParIcularly OpImisIc… •  Personal economic confidence is sot. Just half I’m worried about the cost of healthcare for me/my family as we/they get older 36% I’m worried about having enough savings for when I want to reIre 40% 43% 36% 16% 4% 79% 17% 7% 76% (49%) are confident that they can move beyond their current socio-­‐economic class through hard work and only 10% strongly agree with this sen6ment. • 
Women differ from men with just 45% confident that they can move beyond their current socio-­‐economic class. • 
The self-­‐iden6fied poor are the least op6mis6c, with most disagreeing with the idea that working hard will let them move beyond their current class (80%). •  It’s not surprising then that many find I am confident I can move beyond my current socio-­‐economic class through hard work 10% 39% 38% 13% 49% themselves concerned about the cost of healthcare for themselves and their families as they get older (79%), as well as having enough savings for re6rement (76%). • 
Concern about healthcare costs increases to 84% among women and 79% of women are worried about re6rement. Strongly agree Somewhat agree Somewhat disagree Strongly disagree Q4: How strongly do you agree or disagree with each of the following statements? Base: Total Sample (n=1003) 11
And, Ahtudes Around Employment Are Equally Grim My salary has not increased to the same degree that my cost of living has increased [IF EMPLOYED] 45% 35% 16% 3% 80% •  Eight in ten (80%) working Canadians say that their salary has not increased at the same rate as the cost of living. •  Only half (47%) of unemployed Canadians I am opImisIc about finding a job [IF UNEMPLOYED] 16% 31% 20% 33% 47% are op6mis6c about finding work and those who aren’t hold strong feelings (33% strongly disagree). •  Similarly, the majority of employed Canadians do not expect to be promoted at work (66% disagree). • 
I am opImisIc about gehng promoted at my current job [IF EMPLOYED] 10% 34% 37% 19% 44% Men are more op6mis6c than women (47% agree that they are op6mis6c vs. 41% of women). Strongly agree Somewhat agree Somewhat disagree Strongly disagree Q4: How strongly do you agree or disagree with each of the following statements? Base: Employed N=597, Unemployed N=49 12
Canadian Parents Also Concerned About Their Kids My kids are having trouble finding work in their field [IF CHILDREN 18+] 14% 41% 30% 15% 55% •  More than half (55%) of Canadians with children over 18 report their children having difficul6es finding work in their field. •  A similar propor6on (56%) of parents are concerned about affording post-­‐secondary educa6on for their kids. I won’t be able to afford post-­‐secondary educaIon for my kids 20% 36% 27% 16% 56% Strongly agree Somewhat agree Somewhat disagree Strongly disagree Q4: How strongly do you agree or disagree with each of the following statements? Base: Parents N=588, Parents of kids 18+ N=303. 13
Canadians Are Concerned About Inequality And The Future Of Canada’s Middle Class •  The vast majority of Canadians agree that Income inequality is an important public issue 37% 50% 11% 2% 87% income inequality is an important public issue (87%) and that it is no longer about the gap between the rich and the poor, but rather the very rich and everyone else (85%). • 
Women are especially apt to feel this way (89% and 88%, respec6vely). •  Op6mism in the future of Canada’s middle class Income inequality is no longer about the gap between the rich and the poor, but rather the very rich and everyone else I’m opImisIc about the future of Canada’s middle class 38% 8% 37% 47% 41% 13% 3% 85% 14% 45% is sot. Fewer than half (45%) agree that they are op6mis6c about the future of middle class Canadians. • 
Again, women differ from men with just 42% op6mis6c about the future. • 
Only 24% of those who consider themselves poor are op6mis6c about the future (vs. 45% working class, 48% middle class and a staggering 62% upper class). • 
Regionally, Bri6sh Columbians and Atlan6c Canadians (53% each) are the most op6mis6c about Canada’s middle class, while Quebecers trail (32%). Strongly agree Somewhat agree Somewhat disagree Strongly disagree Q4: How strongly do you agree or disagree with each of the following statements? Base: Total Sample (n=1003) 14
Canadians’ Top PrioriIes For Federal Government: Healthcare For Aging PopulaIon, The Economy, And ReIrement Security • 
Taxes, jobs for youth, and debt reduc6on are in the second 6er with a majority of respondents deeming each a major or top priority. The rest—terrorism, disease outbreaks, cost of post secondary educa6on, and affordable childcare—follow with half considering them a major/top priority. Healthcare and long-­‐term care costs for our aging populaIon 44% Canada’s economy 38% ReIrement security and pensions for our aging populaIon Taxes Jobs for youth Debt reducIon Terrorism Disease outbreaks Increasing costs of post-­‐secondary educaIon Affordable childcare A top priority A major priority 40% 84% 17% 1% 81% 20% 0% 3% 77% 43% 36% 41% 31% 36% 24% 21% 14% 1% 42% 34% 26% 26% 28% 3% 2% 67% 29% 4% 1% 66% 8% 2% 55% 11% 4% 52% 35% 33% 19% 30% 35% 12% 4% 49% 17% 32% 34% 10% 7% 49% 12% 6% 47% 16% 31% A moderate priority 35% A low priority Not at all a priority Q5: Below is a list of issues, please indicate how much of a priority you think each should be for Canada’s federal government? Base: Total Sample (n=1003) 15
Jennifer McLeod Macey, Vice President [email protected] 416.921.0090 ext. 2207 www.pollara.com