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New report shows low-income Canadians struggling financially but not getting the help they need to recover

Low-income Canadians are becoming increasingly vulnerable but are rebuilding their financial health, according to a new cooperative-funded study by national charity Prosper Canada. We found that we lacked access to the financial support we needed to build.

report, Lacking For Those Who Need It Most: Canada’s Financial Aid Gapindicates that affordable, adequate and reliable financial support for low-income people is an important but missing part of the Canadian financial services landscape. Whether it’s smart planning, creating and sticking to a budget, setting and pursuing savings goals, filing tax returns after tax season, or accessing income benefits, it’s rare to find help when you need it.

All Canadians face rising costs of living related to inflation. But for low-income people who spend the majority of their income on basic needs, this has led to financial crises, undermining an inclusive recovery from the pandemic. Not only are low-income people experiencing heightened levels of financial vulnerability and stress, they are unable to find the support they need to meet their financial and economic challenges.

This report highlights the main barriers that keep people from getting the help they need. These include:

  • Low-income people face distinct circumstances and challenges that affect their access to financial assistance services and their ability to pay for them.
  • Low-income people are less likely to trust financial professionals, and low-income, indigenous or racialized people do not always feel respected by them.
  • Mainstream financial information, guidance, and advice are often not appropriate for low-income individuals. This is because it does not consider the distinct situation of low-income people, and few financial assistance services are suitable for this population.
  • There is no strong commercial business case for seeking out and servicing low-income clients due to limited profit-generating opportunities.

Across Canada, there are a handful of community organizations that provide financial assistance services for all regions, but lack the resources and geographic reach to meet the needs of the wider low-income population in Canada.

“We all benefit from quality financial assistance, but low-income Canadians are forced to navigate a complex array of financial products and services on their own every day. Prosper Canada CEO Elizabeth Mulholland said: “We are committed to ensuring affordable, adequate and reliable support for low-income people to safely access these financial services. If not, the consequences are widespread and unnecessary economic stress, hardship and crisis.”

“Our primary purpose at The Co-operators is to provide financial security to Canadians and our communities. There is no doubt about it,” said Chad Park, the cooperative’s vice president of sustainability and civil rights. “The findings in today’s report highlight significant societal gaps and unmet needs that have been left largely unaddressed by the financial sector. We can and should take the necessary steps to build a more inclusive and resilient financial system for all Canadians.”

Research shows that receiving financial assistance is associated with greater economic health and resilience, but in 2022, 800,000 low-income Canadian households did not have access to financial assistance.1 These households are among the millions whose economic health has plummeted since the onset of the COVID-19 pandemic and has yet to recover.

The report’s findings were informed by the participation of financial assistance providers from all sectors, including retail banks, insurance companies, credit unions, financial planners, credit counselors, commercial tax filers, governments and non-profit community organizations. rice field. Prosper Canada invites governments, financial service providers and community organizations to join us in the next phase of our work. In short, we find solutions to fill this critical market gap and ensure everyone gets the help they need to build financial health.

Summarize this content to 100 words Low-income Canadians are becoming increasingly vulnerable but are rebuilding their financial health, according to a new cooperative-funded study by national charity Prosper Canada. We found that we lacked access to the financial support we needed to build.report, Lacking For Those Who Need It Most: Canada’s Financial Aid Gapindicates that affordable, adequate and reliable financial support for low-income people is an important but missing part of the Canadian financial services landscape. Whether it’s smart planning, creating and sticking to a budget, setting and pursuing savings goals, filing tax returns after tax season, or accessing income benefits, it’s rare to find help when you need it.All Canadians face rising costs of living related to inflation. But for low-income people who spend the majority of their income on basic needs, this has led to financial crises, undermining an inclusive recovery from the pandemic. Not only are low-income people experiencing heightened levels of financial vulnerability and stress, they are unable to find the support they need to meet their financial and economic challenges.This report highlights the main barriers that keep people from getting the help they need. These include:Low-income people face distinct circumstances and challenges that affect their access to financial assistance services and their ability to pay for them.Low-income people are less likely to trust financial professionals, and low-income, indigenous or racialized people do not always feel respected by them.Mainstream financial information, guidance, and advice are often not appropriate for low-income individuals. This is because it does not consider the distinct situation of low-income people, and few financial assistance services are suitable for this population.There is no strong commercial business case for seeking out and servicing low-income clients due to limited profit-generating opportunities.Across Canada, there are a handful of community organizations that provide financial assistance services for all regions, but lack the resources and geographic reach to meet the needs of the wider low-income population in Canada.“We all benefit from quality financial assistance, but low-income Canadians are forced to navigate a complex array of financial products and services on their own every day. Prosper Canada CEO Elizabeth Mulholland said: “We are committed to ensuring affordable, adequate and reliable support for low-income people to safely access these financial services. If not, the consequences are widespread and unnecessary economic stress, hardship and crisis.”“Our primary purpose at The Co-operators is to provide financial security to Canadians and our communities. There is no doubt about it,” said Chad Park, the cooperative’s vice president of sustainability and civil rights. “The findings in today’s report highlight significant societal gaps and unmet needs that have been left largely unaddressed by the financial sector. We can and should take the necessary steps to build a more inclusive and resilient financial system for all Canadians.”Research shows that receiving financial assistance is associated with greater economic health and resilience, but in 2022, 800,000 low-income Canadian households did not have access to financial assistance.1 These households are among the millions whose economic health has plummeted since the onset of the COVID-19 pandemic and has yet to recover.The report’s findings were informed by the participation of financial assistance providers from all sectors, including retail banks, insurance companies, credit unions, financial planners, credit counselors, commercial tax filers, governments and non-profit community organizations. rice field. Prosper Canada invites governments, financial service providers and community organizations to join us in the next phase of our work. In short, we find solutions to fill this critical market gap and ensure everyone gets the help they need to build financial health.
https://www.thenewworldreport.com/new-report-shows-low-income-canadians-are-struggling-financially-but-dont-have-the-help-they-need-to-recover/ New report shows low-income Canadians struggling financially but not getting the help they need to recover

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