About half the people living and working in BC are struggling to maintain any savings or financial security.
According to a survey conducted by Canadian Payroll Association (CPA), almost 50% of all British Columbian workers live paycheque to paycheque, and 39% of them say they spend all (or almost all) of their net pay.
Employees in BC continue to have “high debt levels, chronically undersave for retirement, and put themselves at severe risk in the event of economic changes”, reads the report.
Alarmingly, 1-in-4 workers say they would be unable to come up with $2,000 within a month, if an emergency expense should arise.
Moreover around 38% of British Columbians in this study reported increases in their amount of debt over the past year, which is 4% higher than the national average.
Rising need to lower debt, increase savings
While 69% of employees reported that they only save about 10% of their earnings, more than half of all workers in the province believe that they will need more than $1 million to retire.
In light of these severe numbers, the CPA advises workers to start small by allotting a portion of their paycheques to either pay their debts or contribute to long-term savings.
“National Payroll Week, September 10-14, is the perfect opportunity for employers and employees to take stock of their financial situation in view of these survey results,” says Sandra Morrison, CPM, CPHR, and Chair of the Canadian Payroll Association’s Board of Directors.
“Payroll has the power to help employees contribute to financial priorities, to lessen personal stress which manifests in the workplace. Powerful payroll is a winwin across the board.”