« What's your money resolution for the New Year? | Main | What investors need to know for 2013 »

January 02, 2022

Just how long could you go without a paycheque?

It seems most Canadians still can’t go very long without getting paid.

793500__canadian_money_47% of Canadians admit they’d in a tough spot if their paycheque was delayed by just one week, according to a survey from the Canadian Payroll Association.

That's a lot of stress. People who are strapped can’t afford to switch jobs or get laid off because they're just barely making enough to squeak by.

The good news is that number has declined slightly from 2011 and is more evenly distributed among provinces. Here’s what things looked like a year ago.

In 2012, the highest percentages of employees working paycheque to paycheque were in the Atlantic provinces (54%) and Manitoba (53%). But Ontario (52%) and Western (47%) provinces followed closely behind.

Given that breakdown, it's not surprising that almost half of Canadians (46%) admit they can only manage to set aside 5% or less of their net pay. That's a worrying number, considering that saving 10% for retirement is the preferred target.

When asked how close they are to reaching their retirement savings goals, 73% say that they have saved less than a quarter of what they wanted to.

Whether they're wastrels, abandoned spouses or simply down on their luck, sometimes living paycheque to paycheque is not a matter of crazy spending however; it's a simple case of math.

Where do you fit in?

Just how long could you go without a paycheque? Are things looking better or worse than they were a year ago?

By Gordon Powers, MSN Money



Post a comment


Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...