This loss of productivity due to financial stress amounts to $53.9bn annually, up from $46bn in 2023, $40bn in 2022, and $27bn in 2021.
Despite these challenges, a growing number of Canadians remain optimistic about their financial futures. However, the National Payroll Institute warns against false optimism, stressing the need for urgent action to address poor financial habits related to debt, saving, and spending.
“Overwhelmingly, the data captured within the survey underscores the financial hardships faced by working Canadians, so it’s hard to accept the optimistic outlook of respondents as anything more than a dream that is likely to be deferred,” Tzanetakis noted.
Adam Metzler, lead researcher at Canada’s Financial Wellness Lab and Associate Professor at Wilfrid Laurier University, added, “Canadians are struggling. There is no doubt about that. We must act now and work together to create a more secure and financially stable future for all Canadians.”
The Financial Wellness Lab’s analysis suggests that focusing on saving, reducing debt reliance, and controlling spending can help Canadians move from the financially stressed group to more stable clusters.