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Many Canadians feel they won't financially recover from COVID-19 pandemic

Last Updated Oct 27, 2020 at 9:06 am PST

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Summary

New survey finds many Canadians feel they won't financially recover from the COVID-19 pandemic

Many Canadians reporting decreased income amid COVID-19, as well as reduced savings

VANCOUVER (NEWS 1130) – Our finances continue to suffer amid the COVID-19 pandemic.

More than one-third of Canadians in their 40s and 50s who are raising kids and caring for aging relatives say they don’t believe they’ll ever recover from the financial strains brought on by the health crisis.

This is according to a new survey from FP Canada, which has also found the money situation for many Canadians will cut into their holiday spending plans.

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Many respondents say they won’t spend as much on gifts this year compared to previous years, in an effort to keep credit card debt down and to keep from stretching themselves any further.

FP Canada has also found many younger Canadians have already taken advantage of a government subsidy or private-sector deferral program, including 29 per cent who relied on the Canada Emergency Response Benefit.

Meanwhile, about half of those surveyed say they’ve borrowed money to make up for financial shortfalls, with many turning to their family for funds.

This survey comes on the heels of a similar one commissioned by Chartered Professional Accountants of Canada.

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.
  • COVID-19 also is impacting the way survey participants are spending, with 55 per cent saying they are spending less, on average.
  • Nearly half of the respondents (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.

Doretta Thompson, CPA Canada’s Financial Literacy leader says “this is a challenging time for many Canadians and it is never too late to start paying closer attention to your finances and to seek information to help guide your decision making.”

“Canadians are worried amid the uncertainty and the pandemic is influencing how they are viewing and managing their finances,” says Thompson, who adds, “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.”