But the three provinces have taken different routes to their leading positions
When it comes to household savings in Canada, not all provinces are created equal. Three provinces are outperforming the rest of Canada but have taken different routes to their leading positions.
Quebec, Alberta, and Saskatchewan are all likely to have savings rate levels approaching 10% of disposable income in 2024, according to the Household Finance Health Check by Desjardins Economic Studies. Outside of the distortions of the pandemic, Canada has not seen this level of savings since the early 1990s.
Authored by Randall Bartlett, Sonny Scarfone, and LJ Valencia, the report highlights that each of these provinces has taken a different path to get to their high savings rates, with Alberta and Saskatchewan aided by above-average household incomes and relatively affordable housing markets.
Alberta in particular benefits from strong compensation growth and favourable demographic momentum, including net interprovincial migration. Its savings rate was 8.8% according to Statistics Canada data for 2023, the most recent year that comparable data is available.
Saskatchewan’s 2023 savings rate was 7.4%, well above the Canada-wide rate of 3.7% and far exceeding Prince Edward Island (2.8%), Ontario (1.7%), Manitoba (1.1%), BC (0.6%), Newfoundland and Labrador (0.1%), New Brunswick (-1.6%), and Nova Scotia (-3.7%).
Perhaps more noteworthy is Quebec, where the second-highest savings rate at 7.8% (and projected to hit 9.9% in 2024) belies one of the lowest average household incomes in the country, nearly 17% below the national average in 2024.
The secret isn’t really groundbreaking; it’s simply the result of lower spending. Quebecers across income brackets spend less than their counterparts in other provinces, with middle-income households spending over $22,000 less annually than those in Ontario.
Desjardins’ report highlights that this spending restraint, coupled with Quebec’s older yet still economically active population, has allowed the province to outperform in savings despite economic headwinds.
However, the authors warn that Quebec’s advantage may not be sustainable as demographic aging, low population growth, and looming fiscal pressures may restrict the province’s capacity to maintain its current savings trajectory.
Meanwhile, high-income provinces like Ontario and BC are seeing the opposite trend.
Despite their earnings power, households are being squeezed by high housing costs and mortgage renewals, limiting their ability to save. Ontario, in particular, has now surpassed BC in terms of household indebtedness, although the savings rate is projected to increase from 1.7% in 2023 to 3.7% in 2024, the report says.
