Financial stress on the rise
Canadians have felt a harsh financial impact from the fallout of COVID-19, says the Chartered Professional Accountants of Canada (CPA Canada), which released a study on Oct. 27 revealing that one-third of Canadians are more financial stressed because of the pandemic.
CPA Canada’s Canadian Finance Study 2020, examines people's attitudes and feelings towards their personal finances. The results highlight the new financial realities that Canadians are experiencing during these unprecedented times, says the association.
"Canadians are worried amid the uncertainty and the pandemic is influencing how they are viewing and managing their finances," says Doretta Thompson, CPA Canada's Financial Literacy Leader. "The need to provide financial educational and literacy tools to Canadians is paramount so that information is available to help individuals and families make informed decisions when it comes to money matters."
Among the key pandemic-related findings:
31 per cent of the participants say their income has decreased as a result of COVID-19.
30 per cent of respondents report COVID-19 has reduced the amount they are saving.
21 per cent of pre-retired respondents reveal they now plan to retire later as a result of COVID-19.
55 per cent saying they are spending less, on average.
46 per cent say that their financial situation is about the same as it was a year ago.
77 per cent of those surveyed are not receiving a COVID-19-related benefit from the federal government.