A Woman WearsSunglasses in the Shape of Canadian Flags During Canada Day Celebrations in Ottawa
A woman wears sunglasses in the shape of Canadian flags during Canada Day celebrations on Parliament Hill in Ottawa July 1, 2014. Canadians are celebrating their country's 147th birthday. Reuters/Chris Wattie

A survey by the Canadian Payroll Association has revealed the country's workers don't expect to retire anytime soon as they grapple living from paycheque to paycheque, which doesn't really allow them to save for their future after all.

The association's sixth annual National Payroll Week Research Survey found a whopping 79 per cent of employees plan to delay retirement until age 60 or preferably older. Three years ago, it was only 70 per cent of employees.

Canadian workers cited the inability to save enough money as the primary reason for extending their retirement ages.

"The number one reason cited for retiring later in life is that employees are not able to save enough money," the association said.

Workers also think that they need to save at least $500,000 to $2 million so they can retire comfortably, representing 68 per cent of today's working population, up from the 60 per cent over the past three years.

Few believe a savings under $500,000 will be sufficient.

The survey likewise found that the delayed issuance of a paycheque, even if it's only for a week, will already make the lives of over half of Canadian employees difficult. A delayed paycheque will greatly upset the financial obligations of 51 per cent of Canadian workers.

The latest CPA survey also revealed that over a quarter of respondents, at 26 per cent, intimated it would be difficult to find or come up with $2,000 next month if an emergency expense suddenly occurs.

Financial planning experts had long advised Canadian employees to reserve 10 per cent of their monthly earnings as savings for the future. But over half admitted they could not do so and could only save five per cent or less of their paycheque.

"Even though the Canadian economy did well relative to other G7 countries in the past decade, many employed Canadians say they are having a difficult time making ends meet," Marie Lyne Dion, CPA chairman, said.

Patrick Culhane, CPA president and CEO, advised workers who were trying hard to save but finding it hard to succeed should consider directing a portion of net pay into a separate savings account and/or a retirement savings program.

CPA conducted the online survey that included 3,211 employees from a wide range of industry sectors across Canada between June 17 and Aug 1.