A detailed new Economic Viewpoint report from Desjardins, examining why some provinces save more than others, notes that Quebec, Alberta and Saskatchewan currently report the highest household savings rates in Canada. “While high incomes support savings in the Prairie provinces, Quebec’s performance is primarily driven by more restrained household spending,” the report states.
Entitled Household Finance Health Check: Why Do Some Canadians Save So Much More than Others? the report notes that the average disposable income in Quebec remains significantly below the national level.
“Lower household spending across income brackets has been a key factor supporting Quebec’s elevated savings rate,” they write. On average, Quebec households spend $15,000 less than the national average and $22,500 less than Ontario households. “Housing affordability and broader cost-of-living differences have played a central role in shaping these trends,” they write. “Looking ahead, regional differences in demographics, housing costs and economic pressures are expected to drive increasingly divergent savings patterns across provinces.”
Personal income tax changes
They also say the company expects national-level household disposable income to accelerate in 2025, in part supported by recent federal personal income tax changes. “This is likely to support continued income growth into 2026,” they say. In 2027 mortgage renewals are expected to weigh heavily on income growth. They note that Quebec and Alberta households are likely to face less pressure from mortgage renewals than households in British Columbia and Ontario.
In looking at demographics, meanwhile, the paper goes on to detail how incomes drop at age 65, causing household net savings rates to turn negative. “This dynamic helps explain why several Maritime provinces have recorded persistently negative savings rates in recent years,” they write.
“Alberta and Saskatchewan are likely to maintain relatively high savings rates, although lower oil prices could create some headwinds. In Ontario, the savings rate is projected to decline as economic and labour market underperformance, driven by trade tensions with the United States, weigh on household earnings.” They add that British Columbia is less exposed to tariffs but capacity to save can be limited by high housing costs.
“In the Atlantic provinces, savings rates are expected to remain near or below zero due to slow population growth, an aging demographic profile and reduced international and interprovincial migration.” Although Quebec is expected to maintain its spot as a top saver in the near future, the paper also warns that the province may be subject to a similar fate as the province’s population ages.
