Self-employed Canadians leaning on credit as income gaps widen
Women bearing a disproportionate burden
The survey also found a meaningful gender gap. Three in five women (60 per cent) experienced an income shortfall at least once in the past year, compared to 43 per cent of men. The disparity points to structural vulnerabilities in how self-employment income is distributed.
“When more than half of surveyed Canadians earning self-employment income have used credit to cover everyday expenses, it’s clear this goes beyond budgeting,” said Stacy Yanchuk Oleksy, CEO of Money Mentors. “Financial literacy is important, but it can only go so far when income is unpredictable and bills keep coming. People need support before cash flow challenges turn into bigger financial problems.”
Retirement savings and long-term planning at risk
Beyond the immediate squeeze, the survey points to a compounding effect on long-term financial security. Nearly half of respondents (46 per cent) said they could cover no more than two months of regular expenses using savings if their income stopped entirely, including 13 per cent who have no savings at all.
More than two in five, or 41 per cent, have delayed, stopped or reduced contributions toward investing. Thirty-seven per cent have done the same for retirement savings, and 36 per cent for building an emergency fund – findings that echo broader concerns about financial stress hitting record levels across Canada and the hollowing out of financial buffers.
Nearly half of respondents (48 per cent) reported feeling anxious or overwhelmed about their finances, while 28 per cent said financial worry was affecting their sleep. One in five avoided taking time off, including sick days and vacation, because they could not afford to lose the income.
