By rdnewsNOW staff

Albertans have strong economic confidence, but remain burdened by debt

Sep 6, 2018 | 7:08 AM

CALGARY- Working Canadians seem to be making some minor progress towards improving their financial health.

Nationally, 66% report being in a better financial position than a year ago.

However in Alberta, employees continue to have high debt levels, undersave for retirement, and put themselves at severe risk in the event of economic changes.

Bolstered in large part by a stronger economy, 39% of working Canadians believe their local economy will improve.

Albertans have the strongest levels of economic confidence nationally, 60% think the local economy will improve in the next year.

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According to the Canadian Payroll Association’s tenth annual survey, 44% of working Canadians report it would be difficult to meet their financial obligations if their pay cheque was delayed by even a single week.

One in 5 working Canadians (18% in Alberta) say they could not come up with just $2,000 within a month for an emergency expense.

Fewer employees nationally (35%) indicated that they spend all of or more than their net pay (38% in Alberta).

While 71% of those in Alberta say they are trying to save more, 64% state that they have been able to do so.

Albertans report that the primary reason for increased debt is that their spending has increased.

Despite the long-term risks of undersaving, carrying high debt, and their perception of an improved financial picture, working Canadians are not waking up to the harsh realities of what could happen in a sudden shift of financial circumstances.

“We would have hoped to see in the survey results that Canadians would do more to alleviate their debt and take control of their financial situation in strong economic times,” says Peter Tzanetakis, President of the Canadian Payroll Association. “Now is the time to pay down debt, contribute to retirement savings and take control of your financial future. Many Canadians seem to be complacent and are still not focused on the big picture.”

Ultimately, the results illustrate that in the event of higher interest rates, a market downturn or other economic factors beyond their control, working Canadians would struggle to recover and could face severe implications.

Employers should take note: currently 46% of employees say financial stress is impacting their workplace performance; this figure could get much worse.

(Gary McKinnon)