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Alberta

Canadians not feeling great about personal finances… Even worse in Alberta

Published

5 years ago

9 minute read

From MNP Canada

According to the latest MNP Consumer Debt Index being released today, Albertans are finding themselves with a lot less wiggle room in household budgets each month. The amount of money left over after paying all their bills and debt obligations has reached its lowest level since tracking began. Even though the Bank of Canada is expected to keep interest rates stable this week, six in ten in the province say they are more concerned about their ability to repay their debts than they used to be.

MNP Consumer Debt Index Update: Albertans finding themselves with a lot less money each month, six in ten concerned their ability to repay their debts

Stable interest rates are a cold comfort to those already having a difficult time making ends meet  

Even though the Bank of Canada has stated that it will keep interest rates stable until next year, six in ten (58%) Albertans say they are more concerned about their ability to repay their debts than they used to be. The concern could be the result of steeply declining wiggle room in household budgets. After paying all their current bills and debt obligations, Albertans say they are, on average, left with $459 at the end of the month, a drop of $209 since June and the lowest level since tracking began in February 2016. Half (49%, +5 pts) say they are left with less than $200 including three in ten (34%) who say they already don’t make enough money to cover all their bills and debt obligations each month (+9 pts).

The findings are part of the latest MNP Consumer Debt Index conducted quarterly by Ipsos. Now in its tenth wave, the Index tracks Canadians’ attitudes about their consumer debt and their perception of their ability to meet their monthly payment obligations.

Average Finances Left at Month-End

Image Caption: Albertans were asked: Thinking about the amount of after-tax income you make each month compared to the amount of your bills and debt obligations each month, how much is left over? In other words, how much wiggle room do you have before you wouldn’t be able to pay all your bills and debt payments each month?

“There has been a marked decline in the amount of wiggle room that households have in Alberta. says Donna Carson, a Licensed Insolvency Trustee with MNP LTD, the country’s largest personal insolvency practice. “Family budgets are being strained by everyday expenses which means many aren’t putting anything away for rainy day savings and that puts them at risk.  It is most often unexpected expenses that force people to take on more debt they can’t afford and that begins a cycle of increasing servicing costs, and eventual default.”

It’s no surprise that with less in the bank at month-end, Albertans’ ability to cope with unexpected expenses has been shaken. Seven in ten (70%) are not confident in their ability to cope with life-changing events – such as a divorce, unexpected auto repairs, loss of employment or the death of a family member – without increasing their debt.

“A job loss or an unexpected expense are most devastating for people who already have a large amount of debt. Our research continues to show just how vulnerable Alberta households are to inevitable life events like a car repair,” says Carson who recommends having at least three to six months of expenses saved in case of emergencies.

Albertans may have fewer dollars left at month-end to buffer them from sudden expenses but, somewhat surprisingly, they are growing generally far more positive about their personal financial situations than those in other provinces. According to the index, one quarter (25%) say that their debt situation is better than it was a year ago (+6 pts) and one in three (32%) say that it is better than five years ago (+7 pts). In addition to being optimistic about the present, there has been a significant increase in the proportion who feel more positive about the future. Four in ten (44%) expect that their debt situation a year from now will be better, a jump of 19 points. Six in ten (58%) believe that it will be better five years from now (+13 pts).

“The current holding pattern on interest rates and increasing economic optimism in the province could be giving Albertans a sense of relief about their finances. Still, the fact remains that many Albertans are deeply indebted and most don’t have a clear path to repayment,” says Carson pointing to evidence from the research showing that many may intend to take on more credit to make ends meet over the next year.

Just about half (48%) of Albertans say they don’t think that they will be able to cover all their living and family expenses for the next 12 months without going further into debt, a one-point decrease since June. Furthermore, just under half (49%) are confident they won’t have any debt in retirement, a one-point increase.

“Some may have resigned themselves to being in debt for life. Interest rates may remain stable but there are many already struggling to make ends meet at the current rate,” says Carson.

A large portion of Albertans (53%) are concerned about how rising interest rates will impact their financial situation, up one point since June. Fifty-two per cent agree that if interest rates go up much more, they are afraid they will be in financial trouble (-4 pts). Finally, a third (35%) are still concerned that rising interest rates could move them towards bankruptcy (-7 pts).

“The single biggest mistake people make is taking on more debt to try and deal with debt. Even if you are swimming in credit card debt, with a line of credit, a mortgage, a car loan or all of the above, you can get help to design a debt relief strategy,” says Carson.

MNP LTD offers free consultations with Licensed Insolvency Trustees to help individuals understand their debt relief options. Licensed Insolvency Trustees are the only government-regulated debt professionals who offer a full range of debt relief options and can guarantee legal protection from creditors through consumer proposals and bankruptcies.


About the MNP Consumer Debt Index

The MNP Consumer Debt Index measures Canadians’ attitudes toward their consumer debt and gauges their ability to pay their bills, endure unexpected expenses, and absorb interest-rate fluctuations without approaching insolvency. Conducted by Ipsos and updated quarterly, the Index is an industry-leading barometer of financial pressure or relief among Canadians. Visit www.MNPdebt.ca/CDI to learn more.

The latest data, representing the tenth wave of the MNP Consumer Debt Index, was compiled by Ipsos on behalf of MNP LTD between September 4 and September 9, 2019. For this survey, a sample of 2,002 Canadians aged 18 years and over was interviewed. The precision of online polls is measured using a credibility interval. In this case, the results are accurate to within +2.5 percentage points, 19 times out of 20, of what the results would have been had all Canadian adults been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

 

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After 15 years as a TV reporter with Global and CBC and as news director of RDTV in Red Deer, Duane set out on his own 2008 as a visual storyteller. During this period, he became fascinated with a burgeoning online world and how it could better serve local communities. This fascination led to Todayville, launched in 2016.

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2025 Federal Election

Next federal government should recognize Alberta’s important role in the federation

Published on March 28, 2025

By

From the Fraser Institute

By Tegan Hill

With the tariff war continuing and the federal election underway, Canadians should understand what the last federal government seemingly did not—a strong Alberta makes for a stronger Canada.

And yet, current federal policies disproportionately and negatively impact the province. The list includes Bill C-69 (which imposes complex, uncertain and onerous review requirements on major energy projects), Bill C-48 (which bans large oil tankers off British Columbia’s northern coast and limits access to Asian markets), an arbitrary cap on oil and gas emissions, numerous other “net-zero” targets, and so on.

Meanwhile, Albertans contribute significantly more to federal revenues and national programs than they receive back in spending on transfers and programs including the Canada Pension Plan (CPP) because Alberta has relatively high rates of employment, higher average incomes and a younger population.

For instance, since 1976 Alberta’s employment rate (the number of employed people as a share of the population 15 years of age and over) has averaged 67.4 per cent compared to 59.7 per cent in the rest of Canada, and annual market income (including employment and investment income) has exceeded that in the other provinces by $10,918 (on average).

As a result, Alberta’s total net contribution to federal finances (total federal taxes and payments paid by Albertans minus federal money spent or transferred to Albertans) was $244.6 billion from 2007 to 2022—more than five times as much as the net contribution from British Columbians or Ontarians. That’s a massive outsized contribution given Alberta’s population, which is smaller than B.C. and much smaller than Ontario.

Albertans’ net contribution to the CPP is particularly significant. From 1981 to 2022, Alberta workers contributed 14.4 per cent (on average) of total CPP payments paid to retirees in Canada while retirees in the province received only 10.0 per cent of the payments. Albertans made a cumulative net contribution to the CPP (the difference between total CPP contributions made by Albertans and CPP benefits paid to retirees in Alberta) of $53.6 billion over the period—approximately six times greater than the net contribution of B.C., the only other net contributing province to the CPP. Indeed, only two of the nine provinces that participate in the CPP contribute more in payroll taxes to the program than their residents receive back in benefits.

So what would happen if Alberta withdrew from the CPP?

For starters, the basic CPP contribution rate of 9.9 per cent (typically deducted from our paycheques) for Canadians outside Alberta (excluding Quebec) would have to increase for the program to remain sustainable. For a new standalone plan in Alberta, the rate would likely be lower, with estimates ranging from 5.85 per cent to 8.2 per cent. In other words, based on these estimates, if Alberta withdrew from the CPP, Alberta workers could receive the same retirement benefits but at a lower cost (i.e. lower payroll tax) than other Canadians while the payroll tax would have to increase for the rest of the country while the benefits remained the same.

Finally, despite any claims to the contrary, according to Statistics Canada, Alberta’s demographic advantage, which fuels its outsized contribution to the CPP, will only widen in the years ahead. Alberta will likely maintain relatively high employment rates and continue to welcome workers from across Canada and around the world. And considering Alberta recorded the highest average inflation-adjusted economic growth in Canada since 1981, with Albertans’ inflation-adjusted market income exceeding the average of the other provinces every year since 1971, Albertans will likely continue to pay an outsized portion for the CPP. Of course, the idea for Alberta to withdraw from the CPP and create its own provincial plan isn’t new. In 2001, several notable public figures, including Stephen Harper, wrote the famous Alberta “firewall” letter suggesting the province should take control of its future after being marginalized by the federal government.

The next federal government—whoever that may be—should understand Alberta’s crucial role in the federation. For a stronger Canada, especially during uncertain times, Ottawa should support a strong Alberta including its energy industry.

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Alberta

Province announces plans for nine new ‘urgent care centres’ – redirecting 200,000 hospital visits

Published on March 28, 2025

By

Expanding urgent care across Alberta

If passed, Budget 2025 includes $17 million in planning funds to support the development of urgent care facilities across the province.

As Alberta’s population grows, so does the demand for health care. In response, the government is making significant investments to ensure every Albertan has access to high-quality care close to home. Currently, more than 35 per cent of emergency department visits are for non-life-threatening conditions that could be treated at urgent care centres. By expanding these centres, Alberta’s government is enhancing the health care system and improving access to timely care.

If passed, Budget 2025 includes $15 million to support plans for eight new urgent care centres and an additional $2 million in planning funds for an integrated primary and urgent care facility in Airdrie. These investments will help redirect up to 200,000 lower-acuity emergency department visits annually, freeing up capacity for life-threatening cases, reducing wait times and improving access to care for Albertans.

 

 

“More people are choosing to call Alberta home, which is why we are taking action to build capacity across the health care system. Urgent care centres help bridge the gap between primary care and emergency departments, providing timely care for non-life-threatening conditions.”

Adriana LaGrange, Minister of Health

“Our team at Infrastructure is fully committed to leading the important task of planning these eight new urgent care facilities across the province. Investments into facilities like these help strengthen our communities by alleviating strains on emergency departments and enhance access to care. I am looking forward to the important work ahead.”

Martin Long, Minister of Infrastructure

The locations for the eight new urgent care centres were selected based on current and projected increases in demand for lower-acuity care at emergency departments. The new facilities will be in west Edmonton, south Edmonton, Westview (Stony Plain/Spruce Grove), east Calgary, Lethbridge, Medicine Hat, Cold Lake and Fort McMurray.

“Too many Albertans, especially those living in rural communities, are travelling significant distances to receive care. Advancing plans for new urgent care centres will build capacity across the health care system.”

Justin Wright, parliamentary secretary for rural health (south)

“Additional urgent care centres across Alberta will give Albertans more options for accessing the right level of care when it’s needed. This is a necessary and substantial investment that will eventually ease some of the pressures on our emergency departments.”

Dr. Chris Eagle, chief executive officer, Acute Care Alberta

The remaining $2 million will support planning for One Health Airdrie’s integrated primary and urgent care facility. The operating model, approved last fall, will see One Health Airdrie as the primary care operator, while urgent care services will be publicly funded and operated by a provider selected through a competitive process.

“Our new Airdrie facility, offering integrated primary and urgent care, will provide same-day access to approximately 30,000 primary care patients and increase urgent care capacity by around 200 per cent, benefiting the entire community and surrounding areas. We are very excited.”

Dr. Julian Kyne, physician, One Health Airdrie

Alberta’s government will continue to make smart, strategic investments in health facilities to support the delivery of publicly funded health programs and services to ensure Albertans have access to the care they need, when and where they need it.

Budget 2025 is meeting the challenge faced by Alberta with continued investments in education and health, lower taxes for families and a focus on the economy.

Quick facts

  • The $2 million in planning funds for One Health Airdrie are part of a total $24-million investment to advance planning on several health capital initiatives across the province through Budget 2025.
  • Alberta’s population is growing, and visits to emergency departments are projected to increase by 27 per cent by 2038.
  • Last year, Alberta’s government provided $8.4 million for renovations to the existing Airdrie Community Health Centre.

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