'It's clear that Canadians are feeling the financial strain of not having enough money left from their paycheque to put into savings'
Putting money into savings is proving to be a challenge for many Canadians, according to a recent report.
Overall, 74% of Canadians worry they’re not saving enough, reports H&R Block Canada.
And 78% say they’re likely to have even less to contribute to savings accounts in 2025, citing the high day-to-day cost of living.
"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", says Yannick Lemay, tax expert at H&R Block Canada. "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."
Many Canadians are engaging in side hustles, with extra income being their top motivation, according to a previous report from Omnisend.
On average, Canadians put just 7% of their paycheque into savings, according to H&R Block Canada’s survey of 1,790 Canadian members of the Angus Reid Forum, conducted February 12–13, 2025.
That figure falls well below the recommended 20%, according to the company.
Only 18% report saving around 20% or more of their paycheque, while 21% report saving around 10%, and 25% say they save around 5%.
Nearly a third (32%) feel they don’t have enough money left over from their paycheque to build savings, with 10% stating their paycheque doesn’t even cover the cost of living. One in three (33%) feel they may as well enjoy spending their money, as buying a home feels out of reach for the foreseeable future.
Canadians cite a mix of motivations in wanting to be able to put money into savings, including:
This inability to put enough cash into savings can have a lasting impact on Canadians. Specifically, nearly half of Canadians (46%) say they're unable to save money for long-term goals like retirement or a home, as their paycheque goes to their immediate needs.
Many Canadians are embracing this tax season as a means to put money back in their pocket. Overall, 65% say they expect a tax refund this year, of which 35% expect it to be the same or more than last year.
However, a large number of Canadians have no idea if they will get a refund. More than 1 in 3 (37%) do not feel they have a good understanding of all the hundreds of tax credits and benefits they may be eligible for.
"Beyond building up saving for your long-term financial security, putting money into tax-friendly savings helps reduce your taxable income and puts money back in your pocket,” says Lemay.
Long-term employment does not guarantee comfortable retirement for many workers, based on findings from a previous study. That’s because financial stress is still the top worry for workers aged 40 to 60, according to Healthcare of Ontario Pension Plan (HOOPP).
How can employers help workers with their savings?
H&R Block points to the following tips, which employers looking to help out their workers’ in their savings journey can take note:
Many Canadians are looking for financial advice as they struggle to save for retirement, according to a previous report from IG Wealth Management.
