Since the World Health Organization declared a global pandemic almost 11 months ago, the resulting economic uncertainty as the coronavirus crisis drags on has resulted in some employees finding it increasingly difficult to save for the future, according to a recent survey.
The survey by Ipsos for Toronto Dominion Bank revealed one quarter (25 per cent) of Canadian employees said they’ve needed to cut back or stop contributions to their savings and retirement plans.
About one in ten (11 per cent) of the respondents have reduced or frozen contributions to their retirement savings and 13 per cent have cut back or stopped their short-term savings for a range of smaller purchases, such as vacations, clothing, home items, discretionary spending or saving for a rainy day. A further 11 per cent have reduced or stopped their long-term savings for larger purchases, including homes, weddings, home renovations, a new car or education. Indeed, some Canadians (11 per cent) aren’t currently able to save at all, with the numbers rising to 17 per cent for respondents from generation Z and 16 per cent for respondents from generation X.
Additionally, since last March only seven per cent of those surveyed have managed to actively increase their savings in some way, including four per cent who’ve been able to contribute more to their long-term savings for larger purchases, four per cent who’ve done the same with short-term savings for more immediate purchases and just three per cent who’ve been able to contribute more to their retirement savings.
Although a majority (70 per cent) of respondents feel confident managing their finances during these tumultuous times, six in ten (59 per cent) are worried about the effect of the pandemic on their savings and retirement plans. This sentiment is especially strong among younger Canadians, with 73 per cent of respondents who are gen-Zers worried about how the pandemic will impact their savings compared to 67 per cent of millennials and 52 per cent of baby boomers.