Many Canadians lack a financial plan for emergencies

More than half of Canadians are living paycheque to paycheque, with many relying on loans and credit cards when faced with emergencies, a survey from Refresh Financial finds.

Almost half (49%) of respondents said they have no savings for an emergency, with 53% relying on their next paycheque. More than one-third (35%) would take out a small loan or use a credit card to deal with an emergency.

The survey found one-fifth of respondents struggling to get by, with 14% reporting a dire financial situation such as filing for bankruptcy or having something sent to collections.

Another survey for Motive Financial shows Canadians are more optimistic about their finances. The poll found 51% are saving regularly for vacations, retirement or increased costs of living.

The poll found nine of 10 respondents were optimistic about their personal goals and about saving money this year.

Leger conducted the online survey of 1,901 Canadians for Refresh Financial. The margin of error is +/- 2.2%, 19 times out of 20. Advanis conducted the online Motive Financial survey of 1,246 Canadians in early November. A probability sample of the same size would yield a margin of error of +/- 2.8%, 19 times out of 20.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.