COVID-19 A Quebec survey on financial health finds that adults under 35 and women are at h

Friday, 29 May 2020 10:23.AM

Raymond Chabot's Counsellors in Financial Recovery and Licensed Insolvency Trustees have released the results of a survey on how COVID-19 is affecting the personal finances of Quebecers.

The survey found that 18% of Quebecers—approximately one in six adults or one million people across the province—have received the Canada Emergency Response Benefit (CERB). This percentage is relatively consistent across all categories of respondents, with men and women receiving the benefit in equal proportions. However, women are more likely than men to suffer hardship when the program ends. That's because just two thirds of women have a personal finance plan to help them prepare for the post-benefit period, compared with 75% of men. "Quebecers must be made aware that they need to adjust their spending habits if they want to get through the economic uncertainty of the next few months. Our counsellors have noticed that financial anxiety is on the rise in all regions," said Éric Lebel, partner, financial recovery counsellor and licenced insolvency trustee.

Adults under 35 are stressed about the Canada Emergency Response Benefit ending

The survey also reveals that adults under 35 are feeling stressed about the end of the CERB program, with 68% reporting a certain degree of anxiety about it. Respondents in this age group have also done the least to establish a personal finance plan in anticipation of the end of the income support.

"Most restaurant and event workers are young adults, so it's not surprising that anxiety is highest in this age group," added Éric Lebel, partner, financial recovery counsellor and licenced insolvency trustee. "Since these industries are likely to be affected by the crisis for a while yet, there's no chance that things will pick up or get back to normal for these workers any time soon. That's why they need to plan their personal finances carefully."

Highlights of the survey include:

- Among respondents who received the CERB benefit, one third have not set aside any savings to cover their income taxes in 2021, including nearly 50% of respondents aged 18 to 34.
- 40% of respondents aged 18 to 34 indicate they don't have a financial plan for when the CERB program ends, even though it's imminent.
- One quarter of respondents don't have an emergency fund to cover unforeseen circumstances.
- One out of seven Quebecers has dipped into their savings to offset the financial impact of the economic slowdown.
650,000 Quebecers have applied for loan repayment deferrals.
- The survey was conducted by L'Observateur and data was collected from 800 respondents between May 18 and 22, 2020.

SOURCE: Raymond Chabot Grant Thornton