Across the globe, people with disabilities face significant financial challenges. Even in Canada, the financial disparity is well-documented. In 2022, the Canadian Survey on Disability found that 27% of Canadians had one or several disabilities (age 15 and over). Many people living with disabilities struggle to make ends meet while also saving for the future. They also face a gap in pay equity and overall assets, compared to people without disabilities. The Canadian government has created many financial assistance options for people living with disabilities.
Financial struggles of Canadians with disabilities
As of 2022, around 8 million Canadians aged 15 or over live with a disability, which is 27% of the population. This is up five percentage points from 2017, when 6.2 million Canadians were living with a disability, making up 22% of the population. This increase is attributed to Canada’s aging population and the growing incidence of mental health-related disabilities in Canadian working-age adults as well as youth. Disabilities don’t happen to a small, select group – at one point or the other, many people end up with some form of disability, whether short-term or prolonged. For example, people may need hearing aids, or require the use of walkers, whether long-term or as support for rehabilitation and recovery. Disabilities can affect anyone, and everyone deserves to live with dignity.
Studies show that Canadians with disabilities hold 25% less in assets on average, as compared to those without disabilities, excluding housing. This is a substantial gap in accumulating wealth, which can affect a person’s ability to reach financial security, or even to start building an emergency fund.
In addition to the gap in pay equity and asset ownership, people living with disabilities have greater costs. Many extra costs are associated with disabilities: prescriptions, tests, accommodations, and specialized equipment, among others. If disabilities impede employment, people are also limited to a lower overall income potential. While the federal government has quite a few assistance and support options in place for people living with disabilities, provincial support systems are often comparatively inadequate.
Financial assistance options
The Canadian government has multiple programs and assistance options for people living with disabilities. Apart from these, you may also qualify for other types of financial assistance.
- Canada Disability Savings Grant (CDSG) – The CDSG provides matching grants towards the Registered Disability Savings Plan (RDSP). It has a lifetime benefit of up to $70,000 per person.
- Canada Disability Savings Bonds (CDSB) – The government provides deposits for low-income families living with disability. The lifetime benefit of the CDSB is up to $20,000 per individual for low-income families. No contribution is required.
- Registered Disability Savings Plan (RDSP) – This program was introduced by the Canadian government in 2008. It is a long-term savings plan, with a lifetime contribution limit of up to $200,000.
- Ontario Disability Support Program (ODSP) – The ODSP is a provincial program from the Government of Ontario. ODSP offers financial assistance, health benefits, and employment support to people with disabilities. The amount of benefits will depend on the individual’s personal situation. A single person could potentially receive up to $1,368 a month towards basic needs and shelter, more if they are eligible for other benefits or have other immediate family members.
- Disability Tax Credit (DTC) – The DTC is a non-refundable tax credit for Canadians living with prolonged physical or mental disability. It reduces effective income tax for eligible individuals.
- Canada Disability Benefit (CDB) – From July 2025, low-income individuals living with disabilities could receive around $200 per month. The final amount may differ based on the individual’s personal situation. This will be in addition to current provincial disability assistance.
Higher debt burden
People with disabilities are likely to face a higher debt burden, compared to the general population. A 2022 survey on disabilities found that over one in four respondents had one or several disabilities. Between 2017 and 2022 alone, the disability rate in the 15-24 year age group increased by 7 percentage points. More than 1.3 million people with disabilities in Canada were living in poverty, as of 2020.
Approximately one-third of Canadian workers assist a chronically disabled person, leading to a $1.3 billion loss in productivity annually. Even so, a 2024 survey found that 38% of people with disabilities don’t have access to the help they need to live independently. In low-income Canadian households, only 18.5% of people with disabilities receive adequate support for daily activities. According to the 2021 Canadian Housing Survey, 10% of people with disabilities missed a rent or mortgage payment within the last year, compared to 6% of people without disabilities.
These factors suggest that households with disability are likely to rely on debt even more to meet financial needs. As of 2022, 62% of Canadians with disabilities were employed. Even so, the gap in pay equity is still an issue. Households including people with disabilities report having lower annual incomes compared to those without disabilities, which clearly shows the wage gap and greater pay disparity between these groups.
Debt comparison
As of Q3 2023, the Canadian household debt-to-income ratio reached 181.6%, just slightly below the record high of 186.2% in late 2021. In comparison, the average Canadian household debt was 177% of disposable income in 2019. This makes the debt-to-income ratio in Canada one of the highest in the Western world for a few years now, a deeply worrying statistic that shows the fragility of our current economy. It is then highly probable that households with disabilities may have an even higher debt-to-income ratio, as they are likely to have lower pay equity and greater financial pressures.
Tips for people with disabilities
If you’re living with a disability, taking care of someone with a disability, or dealing with a disability in your household, here are some tips:
Explore
Explore all the benefits that are available to you. Take some time to do your research and apply for all relevant government programs, grants, and tax credits. While applying, make note of what paperwork and documentation you will need to submit to support your application. It’s important to have all important documents on hand, which will help the process go smoothly. If your disability hinders this process, ask trusted family, friends or caregivers to help out. Stay alert for signs of potential financial abuse and protect yourself.
RDSP
Set up and use your RDSP (Registered Disability Savings Plan). Take advantage of government matching contributions and grants, and build long-term savings. The RDSP has a high lifetime contribution limit, and the federal government also provides grants and bonds for it. If you’re eligible, apply.
Budget mindfully
Take into account any disability-related expenses for a clearer picture, so you can budget for these expenses better. This might require some adjustments to your current spending patterns. The benefit would be greater peace of mind, knowing that all your required expenses will be covered. Having a clear budget will also help you start saving or building an emergency fund. If any unexpected expenses crop up, the emergency fund can help contribute towards that, helping you stay out of debt and build a stronger financial foundation. You can ask a trusted friend or family member for help, or look for resources that are tailored towards supporting people in your situation.
Seek advice
If you’re in a position to do so, seek financial advice. Try to find an advisor who specializes in disability planning – they will be better suited to helping you plan for your specific needs. They may also have more information on your eligibility for government aid programs.
Support programs
Investigate employment support programs. For example, the ODSP (Ontario Disability Support Program) can assist with job searches and employment opportunities. If you’re employed, support programs can also help with workplace accommodations.
Key takeaways
Canadians living with disability face greater financial disparity, lower pay equity, and higher expenses, compared to Canadians without a disability. As of 2022, 8 million Canadians live with a disability. This is 27% of our population. Yet, they hold 25% fewer assets on average and are likely to face a higher debt burden.
At this point, those with disabilities are still fighting for pay equity. They report lower income on average, compared to households without disabilities. They are also likely to face greater financial pressures due to increased expenses. Take advantage of government grants and support, and make space in your budget to cover these expenses. If you’re currently dealing with debt, you can contact one of our trained credit counsellors for advice – they can help you figure out which debt relief strategy could be the right fit for your specific situation.
