Manitobans hit hard by cost of living increases

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This article was published 22/01/2022 (1733 days ago), so information in it may no longer be current.

Retirement, or semi-retirement, seemed so close for Jennifer Last. But, after two years of a pandemic and the highest level of inflation in 30 years, Last has put her dream on the back burner.

“I have to keep working because there’s no money for retirement,” she said. “I’ve not taken a paycheque for a year and a half.”

The money has gone into Roxy’s Diner and Lounge, her Oak Bluff-based eatery. Her husband planned to retire this year, but their household needs his income, so he’ll keep working.

Two in five Canadians say they’re financially worse off this year than last, according to an Angus Reid Institute poll released Friday. It’s the most people to respond in such a way since Angus Reid began tracking 13 years ago.

Forty-five per cent of the survey’s 482 Manitoban respondents said they’ve taken a financial hit over the past year.

“Every day is a struggle,” Last said. “When you have employees, you feel accountable for them. You want what’s best for them, and you can’t even come close to giving it to them anymore.”

Wage increases aren’t possible with the cost of goods soaring, she said. She’s spending $46 per 16-litre pail of canola oil, while last year she’d pay $20. A tube of ground beef that used to cost $35 is now around $50.

Eighty-two per cent of the poll’s 5,002 respondents say the increased cost of living has outpaced any income growth within their household.

“There is definitely a level of intensity people are feeling that we have not seen in many years of asking these questions,” said Shachi Kurl, Angus Reid Institute’s president.

Nearly three in five Canadians said it’s difficult to feed their household. Those who stated they’re struggling or uncomfortable financially were more likely to emphasize the unaffordability.

The results “ring alarm bells” that places like Siloam Mission may see increased traffic as the year progresses, according to Luke Thiessen, the non-profit’s communications manager.

“I think it’s safe to say that as those conditions get more difficult — food prices go up, housing prices go up — it becomes more difficult to access the basics of maintaining an independent living,” he said.

Siloam Mission expanded its shelter from 110 to 143 beds in 2020. This winter, each resting place is filled, which Thiessen said wasn’t expected to happen so quickly. A number of factors could contribute to the need, not just inflation, he added.

Pre-pandemic, roughly 270 to 320 people would stop at Agape Table in the morning for food. The number now ranges from 440 to 600, according to Jim Steep, the food bank’s executive director.

“You start looking at the cost of food right now and how much it’s gone up… the dollar doesn’t stretch as far,” Steep said.

Lately, he’s noticed more people — who’ve never used Agape Table’s services before — calling in need of hampers.

Thirty per cent of Manitobans who participated in the Angus Reid Institute poll classified themselves as struggling economically. Twenty-eight per cent said they’re uncomfortable; 26 per cent, comfortable; and 16 per cent, thriving.

A majority of Manitobans — 34 per cent — believed their finances won’t change next year, while 33 per cent said they’ll be worse off and 24 per cent said they’ll be better.

“In terms of real and practical reasons, and also maybe because of perception — if you live in a place where cost of living isn’t always an issue — that can also be driving a feeling that people are feeling (inflation) more keenly,” Kurl said.

Canadians aged 35 through 54 were most likely to report they were struggling financially. Of all respondents who said they were struggling, 53 per cent said interest rate increases would have a major negative impact on them.

Higher-income, low-debt households’ situations largely remained unchanged or improved, according to the poll’s data.

Relatedly, RBC’S Financial Independence in Retirement poll noted Canadians are pegging inflation as one of their top three concerns regarding retirement. It’s the first time inflation has been listed as a key player in over a decade.

Inflation is limiting Canadians’ savings growth, the bank’s report, released Friday, said. It also highlighted a comeback in registered retirement savings plans: after seven years of trending downwards, the plans are rebounding.

The Angus Reid Institute poll has a margin of error of plus/minus two percentage points, 19 times out of 20.

gabrielle.piche@winnipegfreepress.com