Three in ten Canadians do not have enough money to meet their needs, according to the BDO Canada Affordability Index released Oct. 10.
The Index examines how affordable life is in Canada. It is based on a poll of 2,000 Canadians conducted by Ipsos for BDO Canada Limited.
The poll found that seventy-four per cent of Canadians live under the burden of debt with credit cards and mortgages being the most common forms of debt. One quarter of participants said their personal debt is so overwhelming they do not know what to do about it.
"It's no surprise that Canadians are overburdened by debt, but what our Affordability Index sheds light on is how serious the affordability challenges are for so many Canadians," says Doug Jones, president, BDO Canada's Financial Recovery Services practice. "This lack of affordability suggests that a significant group of Canadians rely on various forms of debt to cover their spending and many find themselves feeling lost and overwhelmed by this debt.”
The survey found women and millennials are more likely to struggle with affordability. Seventy-three per cent of women find it challenging to save for retirement versus 65 per cent of men. Seventy-four per cent of women have difficulty saving for a major purchase, compared to 64 per cent of men.
As for millennials, 18 per cent say they are delaying having children due to affordability. Sixty-four per cent of millennials report being “poorly” or “terribly” prepared for purchasing a home.