"The future looks bleak": Half of Ontario residents can't make ends meet

Times are tough, with rising inflation and interest rate hikes making life more expensive for many Ontario residents over the last year, and many can’t make ends meet.

Despite the fact that the minimum wage in Ontario went up this week, debt loads are increasing for Ontarians and it is becoming “overwhelming.”

51% of Ontario residents live paycheque to paycheque, while 71% say accumulating debt has had a negative impact on their standard of living.

The data comes from the BDO affordability index with the help of Angus Reid, and according to BDO, “the results aren’t looking good for Ontarians.”

According to the report — the fifth annual affordability index from BDO —  the “financial future of Ontarians looks bleak.”

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The data suggests that 85% of Ontarians state that inflation has caused their finances to worsen. Meanwhile, 40% of Ontarians aren’t confident they’ll ever get out of the hole.

Canadians as a whole are finding it more difficult to save for retirement. The number of Canadians having a hard time saving has increased by 6% from last year. More than 40% of Canadians have cut savings for retirement completely.

One interesting statistic is that among those aged 18 to 24, more than two-thirds say they have no retirement savings at all.

The 2022 Affordability Index reveals 78% of Canadians’ #personalfinances have worsened due to #inflation. More than a third are having difficulty feeding their families (up 12% from 2021): https://t.co/vw7ypHRqxl. pic.twitter.com/xXE0zKbaVd

— BDO Debt Solutions (@BDODebtSolution) September 30, 2022

According to the national data, the rising cost of essential goods and services is the most significant factor for Canadians regarding increasing debt (84%).

While the numbers for Ontario are troubling, it seems to represent a common theme across the country.

Are you one of the Ontario residents having trouble making ends meet?