Canadians are feeling the squeeze as the cost of living continues to climb, with many saying they are worse off than five years ago and dipping into savings just to cover the basics.
A new survey by Harris & Partners found that 60.7 per cent of respondents feel financially worse off compared to 2020. Nearly 90 per cent said essentials like food, rent and utilities have become harder to afford in the past year.
“These findings show just how much the cost of living crisis has taken hold,” said Joshua Harris, CEO of Harris & Partners. “When nearly nine in ten Canadians are saying that even the basics have become harder to afford, it is a clear sign that many are struggling just to get by.”
The financial strain is forcing households to draw on savings more often. The survey shows 78.7 per cent of Canadians have dipped into their savings more frequently than before, and 84.5 per cent worry more about money now than they did in 2020.
“These are not marginal changes. They point to a real erosion of the financial safety net,” Harris said. “When nearly four in five people are drawing down savings more often, it means emergency funds are being used for everyday costs. That is not sustainable for households or for the wider economy.”
Savings are increasingly being used for rent, groceries, utilities and childcare, expenses that used to be covered by regular income.
Harris warned that this leaves families vulnerable to job loss, illness or unexpected bills.
“Once that buffer is gone, any setback can turn into a crisis very quickly,” he said.
The stress is also taking a toll on mental health.
“Financial stress does not stay in a spreadsheet,” Harris said. “It shows up as burnout, loss of focus, and strain at home. We are hearing from people who feel they are always one bill away from trouble.”
Image credit: Depositphotos.com
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