A new survey of thousands of Canadians has shown that nearly 40 per cent say they have had moderate to high levels of income volatility in the past year.
Income volatility means month to month income is inconsistent, meaning not received on a regular or consistent – and/or unstable meaning the amount varies each time and by a significant amount.
The survey, conducted by IPSOS polling for the Toronto-Dominion Bank (TD), found that a vast number of working Canadians, an estimated 10 million, experience income volatility and a third of that number (3.3million) have monthly income that can fluctuate by as much as 25 per cent or more.
Bharat Masrani, Chief Executive Officer and Group President of TD Bank Group said, “Our findings suggest that impact is both pervasive and profound – making it hard for many people to live the life they want today, let alone plan for and feel confident about their future”.
The study showed those with high income volatility often delayed buying groceries or paying bills and often felt stress about the state of their finances.
“This confirms what many community organizations have suspected for some time – that there has been a sea change in the financial lives of Canadian households. Rising income volatility appears to be making it far more challenging for households at all income levels to manage financially, but Canadians with lower incomes are really feeling this most sharply,” said Elizabeth Mulholland, CEO of national charity, Prosper Canada.
Another survey meanwhile noted that one in four Canadian homeowners have missed bill payments at least once in the last year.
This survey for Manulife Bank of Canada showed mortgage debt was up 11 per cent last year, to $201,000.
“The truth about debt in Canada is that many homeowners are not prepared to adjust to rising interest rates, unforeseen expenses or interruption in their income,” says Rick Lunny, President and Chief Executive Office, Manulife Bank of Canada.
The survey showed half of respondents (51%) had $5,000 or less set aside to deal with a financial emergency, while 20 per cent have no money set aside at all. Some 70 per cent could not handle a 10 per cent increase in mortgage payments which could result in some cases from as little as a one per cent increase in current record low interest rates
MANULIFE DEBT SURVEY
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Like all bad news, this will be filed under G for garbage.Trudeau’s government could not care less.