New survey finds more Canadians are digging into savings

People are digging into personal savings to pay routine bills -- that’s the finding of a survey that shows rising costs are putting increasing pressure on Canadians.

For 87-year-old Sydney, N.S., resident Bernie Larusic, living on a fixed-income is hard these days.

“It's hurting me, so it must be wicked on some of the other people I talk to. We have a food bank at our church and it's always empty,” said Larusic.

A new survey shows more Canadians are taking money from savings to cope with the rising costs of living.

The latest data from the Angus Reid Institute finds that two-in-five people dipped into their saving accounts to cover living expenses.

“Given what's happening now, it's very important you have savings there. Before, we could live on our pension and not worry about going into savings,” said Larusic.

At Loaves & Fishes in Sydney, they see first-hand the struggles some people are facing financially.

This past weekend saw big numbers for their annual Easter dinner.

“We're serving more. It's up about 10 per cent. Other years were take-out, but before the pandemic, we're up about 10 per cent,” said Marco Amati, Loaves & Fishes General Manager.

The survey also shows that 67 per cent of Canadians reduced their discretionary spending, while 43 per cent delayed a major purchase, such as a new house or car.

“I see people coming in struggling with the cost of groceries, the cost of rent, and the cost of gas for their cars,” said Len Shaw, Financial Advisor in Sydney.

Shaw says it's important to have a plan in place and try not to dip into savings.

“We're seeing people having to work longer because those retirement plans are depleted. Also, if it's an RRSP, there's going to be an income tax liability when you withdraw that money out, which can add to your financial burden,” he said.

Shaw says there are ways to alleviate financial troubles, and the first step is reaching out for help.