MNP report says Canadians expect 2026 to be challenging for their finances

CALGARY – A new report by insolvency firm MNP Ltd. suggests Canadians are expecting their household finances will come under pressure this year.

The report says 71 per cent anticipate higher living costs heading into the new year, while 59 per cent anticipate a worsening economy and 52 per cent see job market weakness coming.

MNP president Grant Bazian says Canadians expect most aspects of daily life to worsen rather than improve in 2026.

“There is a widespread sense that household finances will come under increasing pressure, fuelling heightened anxiety about economic security in the year ahead,” Bazian said in a statement Monday.

The report comes amid worries about the formal review of the free trade agreement between Canada, the United States and Mexico later this year and rising geopolitical concerns. 

Despite the pessimism, MNP’s consumer debt index, which measures Canadians’ attitudes toward their debt and gauges their ability to pay their bills and manage expenses, slightly improved for the quarter by one point to 87 points.

MNP said the increase bucked the seasonal trend of deteriorating debt sentiment and marked the first time since its inception that the index has improved in December.

The report said 41 per cent of respondents said they are within $200 of not being able to pay their bills each month, an improvement of seven percentage points from last quarter and the lowest level measured in the post-pandemic period. 

Bazian said some households are entering the new year with slightly more financial breathing room.

“For others, ongoing economic uncertainty continues to drive debt avoidance. Sustained financial pressure is prompting both decisive action and withdrawal among Canadians,” he said.

The report said the average amount Canadians have left after monthly expenses was $907, an increase of $163 since last quarter, while 47 per cent of Canadians reported having six months of emergency savings.

The report was based on data from an online poll, which sampled 2,001 Canadians aged 18 years and over, and was compiled by Ipsos on behalf of MNP between Nov. 28 and Dec. 1, 2025. The polling industry’s professional body, the Canadian Research Insights Council, says online surveys cannot be assigned a margin of error because they do not randomly sample the population.

This report by The Canadian Press was first published Jan. 12, 2026.