Apr 10, 2025
Sometimes, it’s not about keeping up with the Joneses, but about saving for a rainy day. But it seems that an increasing number of Canadians feel they aren’t able to do either these days. A new H&R Block Canada survey reveals only 7% of Canadians are putting a fifth of their paycheque into savings.
"While many Canadians hold a mix of tax-friendly savings accounts, it's clear that Canadians are feeling the financial strain of not having enough money left from their paycheque to put into savings, given the high cost of living,” Yannick Lemay, H&R Block Canada tax expert, said in a statement.
Advertisement
"The good news is that 65% of Canadians expect a refund this year, up from 36% last year, of which a significant portion is likely due to investing in tax-friendly savings plans such as RRSPs."
In fact, 85% feel living paycheque to paycheque is the new norm, up 25% from a similar H&R Block survey in 2024.
What about the nest egg?
For some respondents, a nest egg doesn’t even factor into their concerns. One in 10 Canadians say their paycheque doesn't even cover the cost of living.
Overall, slightly over half of Canadians feel good about their current personal financial situation, compared to 46% who are not feeling positive. Just over half say that despite making a decent salary, it's hard to make ends meet, and 81% are concerned their income is not keeping pace with the cost of living.
As well, almost three-quarters of Canadians worry they're not putting enough money aside into savings. Nearly a third feel they don't have enough money left over from their paycheque to build up their savings.
Nearly half of Canadians say they're unable to save money for long-term goals like retirement or a home, as their paycheque goes to their immediate needs. One in three Canadians feel they may as well enjoy spending their money as buying a home feels out of reach for the foreseeable future.
Must Read
- Stop the leak: 5 costs Canadians (still) overpay for every single month. How many are sabotaging your 2026 budget?
- What's your worth? Here are the 3 net worth milestones that change everything for Canadians (and what they say about you)
- Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich — and that ‘anyone’ can do it
Motivations for saving
Respondents reported a variety of motivations for saving money, with the most common reason being the need to prepare for unexpected expenses, cited by 72% of participants. A significant portion — 68% — also indicated that they were saving in order to avoid borrowing more money through credit cards or loans.
Advertisement
For many, saving was part of a longer-term financial strategy, with 59% putting money aside specifically for retirement. Nearly half of the respondents, 47%, were motivated by the desire to earn interest in a savings account. Meanwhile, 43% said they were saving so they could eventually splurge on something special for themselves, such as a vacation, a new car or another personal indulgence.
Buying a home was another goal, though less common overall, with 19% of respondents saving toward a future home purchase. Interestingly, the intention to save for a home varied significantly by age group. Among younger respondents aged 18 to 34, nearly half (46%) said they were saving primarily to purchase a home. In contrast, this priority dropped to just 16% among those aged 35 to 54, and even further to only 4% among those 55 and older.
Just over half are aiming to put their savings in a TFSA, followed by a high-interest savings account, then an RRSP, the first home savings account, while 14% plan to simply keep their cash at home.
Survey methodology
The survey was conducted by H&R Block in French and English from February 12 to 13 among a nationally representative sample of 1,790 Canadians members of the Angus Reid Forum.
You May Also Like
- Here’s how to retire in 10 short years no matter where you live in Canada — even if you’re starting with $0 savings
- If you’re still feeling the pinch this month — don’t panic. Here are 5 easy ways to fix your finances without a total overhaul
- How Warren Buffett’s simple buy-and-hold real estate approach offers a lesson for Canadian homeowners and long-term investors
- Approaching retirement with no savings? Don’t panic, you're not alone. Here are easy ways you can catch up (and fast)
Nicholas completed his master's in journalism and communications at Western University. Since then, he's worked as a reporter at the Financial Post, Healthing.ca, Sustainable Biz Canada and more. Aside from reporting, he also has experience in web production, social media management, photography and video production. His work can also be found in the Toronto Star, Yahoo Finance Canada, Electric Autonomy Canada and Exclaim among others.
Managing Money • Mar 06
