Albertans’ levels of debt remain high, survey says

More than 60 per cent believe they will have to save more than $1M to retire

While Albertans are optimistic that the economy will improve, employees in the province continue to have high debt levels and are not saving enough for retirement, a new survey from the Canadian Payroll Association indicates.

Results from the organization’s 10th annual survey show Albertans have the strongest levels of economic confidence in the country, with 60 per cent believing their local economy will improve in the next year.

More than 70 per cent of Albertans who are trying to save more also reported that they have succeeded in putting money away.

But according to the payroll association, despite some gains, debt levels among working Canadians have increased. In Alberta, 43 per cent said they feel overwhelmed by their level of debt, and 37 per cent reported increases in their amount of debt during the past year.

“The economy’s improving for Alberta employees … they’re saving more,” said Frank Lilley, past-chair of the Canadian Payroll Association board of directors.

“There’s still some work to do there, but I would say there’s been an improvement from last year.”

When it comes to retirement savings, 72 per cent of Canadians and Albertans say they have only saved a quarter or less of the amount they expect they will need to retire, and 62 per cent of Albertans believe they will need to save more than $1 million to retire. Sixty four per cent of Albertans said they save 10 per cent or less of their earnings.

Lilley said the payroll association encourages employees to talk to their payroll professional about what options their employer has for them to save, such as a pension or group RRSP, buying company shares or splitting pay between chequing and savings accounts.

“We always say, if you put it away before you spend it, you’re more likely to save it,” Lilley said.

The online research survey was conducted between June 22 and Aug. 1, and included more than 5,000 employees from across Canada from a range of industry sectors.

Another recent survey, conducted

The economy’s improving for Alberta employees … they’re saving more …I would say there’s been an improvement from last year.

by Ipsos on behalf of insolvency practice MNP LTD, showed half of Albertans are not confident they will be able to cover all expenses in the next year without going into more debt. The survey also indicated four in 10 Albertans regret the amount of debt they have taken on or are concerned with their current level of debt.

According to MNP, more Albertans are filing consumer proposals compared with last year.