BC’s workers continue to have high debt levels, chronically undersave for retirement, and put themselves at “severe risk” in the event of economic changes.
Those are the latest findings from a Canadian Payroll Association (CPA) survey released on Wednesday.
The survey looked at the economic situation of employees across the province and the results were less-than-encouraging.
In fact, the CPA found that of half BC employees live paycheque to paycheque. Making matters worse, 39% of those polled indicated that they spend all – or more – of their net pay. A further one-in-four respondents said it would be “difficult” to come up with $2,000 within a single month for an emergency situation.
However, a large number (42%) of those polled also believe their local economy will improve in the next year.
And while 65% of BC workers indicated their attempts to save more have been successful, 69% of employees said the amount they actually save is 10% or less of their earnings.
Despite these dismal numbers, over half (55%) of workers in BC believe they will need more than $1 million to retire and 40% said they will have to work longer in their life than they originally thought.
In light of these numbers, the CPA has some advice for workers in BC.
“Now is the time to pay down debt, contribute to retirement savings and take control of your financial future,” said CPA President Peter Tzanetakis.
He added that many people “seem to be complacent and not focused on the big picture.”