ATTENTION: News Editors, Business Editors, Personal Finance Editors
Many Manitobans living pay cheque to pay cheque, not saving enough for
retirement
Manitoba employees’ retirement goals challenged by debt and economy, payroll
survey finds
WINNIPEG (September 7, 2016) – For many working Canadians, and for those in Manitoba, the road
to a comfortable retirement is becoming longer and more difficult. A large portion of the working
population is living pay cheque to pay cheque, unable to save, and worried about their local economy,
according to the Canadian Payroll Association’s eighth annual Research Survey of Employed
Canadians, released today ahead of National Payroll Week. The survey reveals that only 36% of
working Canadians and only 32% of those in Manitoba expect the economy in their city or town
to improve in the coming year.
More than half of working Manitobans living pay cheque to pay cheque
Many working Manitobans are cash strapped and barely making ends meet. More than half (54%)
live pay cheque to pay cheque and one-third (32%) would find it tough to come up with $2,000
for an emergency. Nationally, less than half (48%) report it would be difficult to meet their financial
obligations if their pay cheque was delayed by even a single week.
“A significant percentage of working Canadians carry debt, have a gloomy view of their local economy
and are fearful of rising interest rates, inflation, and costs of living,” says Patrick Culhane, the
Canadian Payroll Association’s President and CEO. “In this time of uncertainty, people need to take
control of their finances by saving more. ‘Paying Yourself First’ (by automatically directing at least
10% of net pay into a separate savings account or retirement plan) enables employees to exercise
some control over their financial future.”
Incomes flat, saving capacity drained by spending and debt
“Survey data suggests that household income growth has stalled, as respondents reporting
household income above $100K has hardly increased in five years,” says Alec Milne, Principal at
research-provider Framework Partners. “In fact, real incomes have actually declined when inflation is
taken into account.”
While pay has remained largely unchanged, employees’ spending and debt levels have affected their
ability to save. Nationally, 40% of employees, and 51% in Manitoba, say they spend all or more
than their net pay.
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Despite employees’ challenging financial situations, only 28% of respondents nationally cite higher
wages as a top priority. Instead, an overwhelming 48% nationally, are most interested in better worklife balance and a healthy work environment. In Manitoba, 36% prioritize higher wages (more than
anywhere else). Even so, 43% are more interested in better work-life balance and a healthy
work environment.
“Clearly, many Canadians are concerned about their financial situation,” says Lucy Zambon, the
Canadian Payroll Association’s Board Chair. “But better work-life balance does not have to mean
reduced financial security if you spend within your means and ‘Pay Yourself First’ as a step towards
financial well-being.”
Manitoba employees feeling overwhelmed by debt
Over one-third (39%) of working Canadians feel overwhelmed by their level of debt, an increase from
the three-year average of 36%. Debt levels have risen over the past year for 31% of respondents. In
Manitoba, nearly half (47%) feel overwhelmed by debt and 39% say their debt level has increased
this year. Unfortunately, 11% nationally and a whopping 18% in Manitoba (the highest percentage
nationally) do not think they will ever be debt free.
Similar to prior years, 93% of respondents nationally carry debt (94% in Manitoba). Over half of
respondents nationally (58%) said that debt and the economy are the biggest impediments to saving
for retirement.
Retirement savings fall short, retirement pushed back
Half of Canadians and 44% of Manitoba respondents think they will need a retirement nest-egg
of at least $1 million.
Unable to save adequately, the vast majority of working Canadians have fallen far behind their
retirement goals, with 76% nationally and 74% in Manitoba saying they have saved only onequarter or less of what they feel they will need.
Nearly one-half of employees nationally (45%) now expect they’ll have to work longer than they had
originally planned five years ago, primarily because they have not saved enough. Respondents’
average target retirement has risen to 62, whereas these same respondents’ target retirement age
five years ago was 60.
How payroll can help
“Payroll professionals can arrange to automatically deduct a portion of an employee’s net pay each
pay period and direct it into a separate savings or retirement account, making it easier to save,”
Zambon explains.
To learn more about automatic savings – and how you can Pay Yourself First – talk to your payroll
professional.
The Canadian Payroll Association’s Research Survey of Employed Canadians is conducted to mark
National Payroll Week (September 12-16, 2016). For more information about National Payroll Week,
and the mission-critical role of payroll professionals, visit npw-snp.ca.
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Regional and national survey findings are available. Go to www.payroll.ca → Media Room for
news releases and infographics.
Canadian Payroll Association spokespersons are available across Canada for interviews.
Contact:
Robert Stephens
Leslie Challis
Alison Rutka
[email protected]
[email protected]
[email protected]
416.777.0368
416.767.0167
416.487.3380 x 125
Canadian Payroll Association Research Survey of Employed Canadians
A total of 5,629 employees from across Canada, and from a wide range of industry sectors,
responded to an online research survey between Monday, June 27th, 2016 and Friday, August 5th,
2016, using a convenience sampling methodology. The survey was developed by the Canadian
Payroll Association and conducted by Framework Partners. The survey is consistent with a margin of
error of plus or minus 1.3% 19 times out of 20, but as a non-probabilistic methodology was used, a
definitive margin of error cannot be expressed.
Payroll Professionals - Keeping Canada Paid™
Canada’s 1.5 million employers rely on payroll practitioners to ensure the timely and accurate annual
payment of $901 billion in wages, $305 billion in statutory remittances to the federal and provincial
governments, and $163 billion in health and retirement benefits, while complying with more than 200
federal and provincial regulatory requirements. Since 1978, the Canadian Payroll Association has
annually influenced the payroll compliance practices and processes of over five hundred thousand
organizational payrolls. As the authoritative source of Canadian payroll knowledge, the Canadian
Payroll Association promotes payroll compliance through education and advocacy.
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