Financial toll of COVID-19 pandemic weighing heavily on Albertans: survey
New data shows the COVID-19 pandemic is taking a significant financial toll on some Albertans.
The fourth-annual BDO Affordability Index released on Monday indicates rising inflation and housing costs have prevented Albertans from being able to save for their retirement and is impacting their standard of living compared to what they enjoyed pre-pandemic.
The index is produced by BDO Debt Solutions and data gleaned from an online survey conducted by the Angus Reid Group.
Jordan Day, senior BDO vice president and licensed insolvency trustee, told CTV News Edmonton how various demographics are being impacted in different ways, with families whose household income is less than $50,000 a year feeling the pinch most drastically.
In Alberta, 46 per cent of people say they put less of their paycheque into savings while only 22 per cent indicated they were able to save more during the pandemic.
“What we are seeing in Alberta is there is a real erosion in terms of where families are able to spend their money,” Day said.
Of those saving less, 63 per cent attribute it to increased spending on essentials, higher than the national average of 57 per cent.
According to Day, the top three concerns identified by Albertans were retirement savings, groceries and the cost of housing.
“We are seeing Albertans struggling in those areas,” he said. “Given what we’ve been through over the past 18 months, Canadians are having a hard time from a financial perspective.
“While many Albertans have some funds put away for retirement, most of them recognize that it’s nowhere near what they will need when that day comes.”
About one-in-four respondents indicated that putting food on the table for themselves and their family is a struggle.
“(That could be) inflation, in terms of cost of delivery,” Day added. “We are really feeling it.”
Additionally, two-in-five Albertans believe they will not be able to restore the standard of living they enjoyed before the pandemic due to incurred debts.
Roughly half of Albertans indicated housing was a major challenge to their budgets, including the sheer cost of renting. Seventy per cent of respondents said they would not be able to save enough money to make a down payment on a future home.
“Many are saying there’s just no way, in the next few years, that they will be able to save the money and purchase a home.”
For Day, much of this financial hardship shows that many people lived paycheque to paycheque. He hopes the pandemic taught people the hard lesson that having an emergency reserve fund for worst-case scenarios is necessary.
Unfortunately, Day forecasts that concerns like rising housing costs and soaring inflation will not be going away any time soon.
“(It appears) natural gas prices could be going up and that’s going to affect all of us when it comes to our heating bills this winter,” he added. “We see it at the pumps right now, fuel prices are getting higher.
“All of our goods are going to be shipped by truck or rail, and (those fuel prices) will affect their cost.”
The Angus Reid Group survey was conducted between Sept. 1 and 7, with a randomized sample of 2,015 Canadians taking part and a margin of error of +/- 2.2 per cent (19 times out of 20).
CTVNews.ca Top Stories
Why drivers in Eastern Canada could see big gas price spikes, and other Canadians won't
Drivers in Eastern Canada face a big increase in gas prices because of various factors, especially the higher cost of the summer blend, industry analysts say.
How to avoid the trap of becoming 'house poor'
The journey to home ownership can be exciting, but personal finance columnist Christopher Liew warns about the trappings of becoming 'house poor' -- where an overwhelming portion of your income is devoured by housing costs. Liew offers some practical strategies to maintain better financial health while owning a home.
Toxic forever chemicals in drinking water: Is Canada doing enough?
As the United States sets its first national limits on toxic forever chemicals in drinking water, researchers say Canada is lagging when it comes to regulations.
'A living nightmare': Winnipeg woman sentenced following campaign of harassment against man after online date
A Winnipeg woman was sentenced to house arrest after a single date with a man she met online culminated in her harassing him for years, and spurred false allegations which resulted in the innocent man being arrested three times.
Some customers steaming after McDonald's ends free hot drink sticker program
It took years for Vinnie Deluca to collect more than 400 cards worth of free McDonald's McCafe coffee, a collection that now has "zero value" after the company discontinued the program.
Biden scores endorsements from Kennedy family, looking to shore up support against Trump and RFK Jr.
U.S. President Joe Biden will accept endorsements from at least 15 members of the Kennedy political family during a campaign stop in Philadelphia on Thursday as he aims to undermine Donald Trump and marginalize the candidacy of Robert F. Kennedy Jr.
Where did the gold go? Crime expert weighs in on unfolding Pearson airport heist investigation
Almost 7,000 bars of pure gold were stolen from Pearson International Airport exactly one year ago during an elaborate heist, but so far only a tiny fraction of that stolen loot has been found.
When new leaders took over in ancient Maya, they didn't just bury the former royals. They burned their bodies in public
New archeological investigations in Guatemala reveal that the ancient Maya people had a ritual of burning royal human remains as a public display of political regime change.
Party's over: Coyotes play final game as Arizona franchise before move to Salt Lake City
Mullett Arena buzzed like few times in the two years since the Arizona Coyotes moved in, the fans amped for one last desert hurrah.