Unexpected $1,000 expense too much for most Canadians under 55: new survey

Many Canadians “lack a financial cushion” according to a new Angus Reid survey, which found majority of respondents under 55 could not handle an unexpected expense of more than $1,000.

Many Canadians “lack a financial cushion” according to a new Angus Reid survey, which found majority of respondents under 55 could not handle an unexpected expense of more than $1,000.

“As housing costs continue to rise from this period of high interest rates, renters and mortgage holders feel squeezed,” the Angus Reid survey said.

This financial concern is compounded by half of those surveyed in the same age group, worrying about losing their jobs.

Key findings from the survey include:

Women aged 35 to 54 years old are most likely to report they can’t manage any unplanned bills, with a quarter saying they are “already too stretched” financially.

40 per cent of people told the survey they are not contributing to their Tax Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) because “they don’t have enough to save.”

Higher interest rates are putting a strain on mortgage holders, with 29 per cent saying an unexpected $250 expense “would break the bank.”