New report shows low-income Canadians struggling financially but not getting the help they need to recover

Financial Planners


Toronto, April 11, 2023 /CNW/-

Prosper Canada is a national charity dedicated to expanding economic opportunities for Canadians living in poverty through program and policy innovation.  (CNW Group/Prosper Canada)

Prosper Canada is a national charity dedicated to expanding economic opportunities for Canadians living in poverty through program and policy innovation. (CNW Group/Prosper Canada)

New study from national charity prosperous canadafunded by cooperatives, to help low-income Canadians, who are increasingly economically vulnerable, access the financial support they need to rebuild their economic health. It was discovered that there was a lack of

report, Lacking For Those Who Need It Most: Canada’s Financial Aid Gapindicates that affordable, adequate and reliable financial support for low-income people is an important but missing part of the Canadian financial services landscape. Whether it’s smart planning, creating and sticking to a budget, setting and pursuing savings goals, filing tax returns after tax season, or accessing income benefits, it’s rare to find help when you need it.

All Canadians face rising costs of living related to inflation. But for low-income people who spend the majority of their income on basic needs, this has led to financial crises, undermining an inclusive recovery from the pandemic. Not only are low-income people experiencing heightened levels of financial vulnerability and stress, they are unable to find the support they need to meet their financial and economic challenges.

This report highlights the main barriers that keep people from getting the help they need. These include:

  • Low-income people face distinct circumstances and challenges that affect their access to financial assistance services and their ability to pay for them.

  • Low-income people are less likely to trust financial professionals, and low-income, indigenous or racialized people do not always feel respected by them.

  • Mainstream financial information, guidance, and advice are often not appropriate for low-income individuals. This is because it does not consider the distinct situation of low-income people, and few financial assistance services are suitable for this population.

  • There is no strong commercial business case for seeking out and servicing low-income clients due to limited profit-generating opportunities.

Across Canada, there are a handful of community organizations that provide financial assistance services for all regions, but lack the resources and geographic reach to meet the needs of the wider low-income population in Canada.

“We all benefit from quality financial assistance, but low-income Canadians are forced to navigate a complex array of financial products and services on their own every day. The government benefits and credits that help build fiscal health are often very difficult to navigate and access effectively.” Elizabeth MulhollandCEO prosperous canada“Failure to ensure that low-income people have access to affordable, adequate and reliable assistance to safely navigate these financial services results in widespread and unnecessary economic stress. , hardships, and crises arise.”

“Our main purpose at The Co-operators is to provide financial security to Canadians and our communities. There is no doubt about it,” he said. Chad Park, Vice President, Sustainability and Citizenship for Cooperatives. “The findings in today’s report highlight significant societal gaps and unmet needs that the financial sector has largely gone unaddressed. We can and should take the necessary steps to build an inclusive and resilient finance – a system for all Canadians.”

Research shows that receiving financial assistance is associated with greater economic health and resilience, but in 2022, 800,000 low-income Canadian households did not have access to financial assistance.1 These households are among the millions whose economic health has plummeted since the onset of the COVID-19 pandemic and has yet to recover.

The report’s findings were informed by the participation of financial assistance providers from all sectors, including retail banks, insurance companies, credit unions, financial planners, credit counselors, commercial tax filers, governments and non-profit community organizations. rice field. prosperous canada invites governments, financial service providers and community organizations to join us in the next phase of our work. Find solutions to close this critical market gap and ensure everyone gets the help they need to build financial health.

read the report

Read Executive Summary

prosperous canada

prosperous canada is a national charity dedicated to expanding economic opportunities for Canadians living in poverty through program and policy innovation. As Canada’s leading economic empowerment champion, prosperous canada We work with government, business and community partners to develop and promote financial policies, programs and resources that remove barriers and help more Canadians thrive. For more information, please visit www.prospercanada.org.

Collaborator

Co-operators is Canada’s leading financial services cooperative, offering multi-line insurance and investment products, services and personalized advice to help Canadians build financial strength and security. .Co-ops have more than $58.2 billion in assets under management. Collaborators have provided Canadians with trusted guidance for the past 78 years. The organization is well known for its community involvement and commitment to sustainability. By achieving carbon neutral equivalence in 2020, the organization commits to achieving net-zero emissions from its operations and investments by 2040 and 2050, respectively. Cooperators are also ranked among the Corporate Knights’ Best 50 Corporate Citizens. CanadaFor more information, please visit www.cooperators.ca.

The cooperative works every day to support the unmet economic, environmental and social needs of all Canadians, helping build more resilient and sustainable communities.  (CNW Group/Prosper Canada)

The cooperative works every day to support the unmet economic, environmental and social needs of all Canadians, helping build more resilient and sustainable communities. (CNW Group/Prosper Canada)

sauce prosperous canada

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View original content and download multimedia: http://www.newswire.ca/en/releases/archive/April2023/11/c6137.html



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