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Protection from income shocks
Domain
Prosperity
Subdomain
Economic security and deprivation
Indicator
Protection from income shocks
Definition
Proportion of individuals living in households who have enough savings to maintain well-being for three months (asset resilience).
Measurement
This indicator is measured in the Survey of Financial Security (SFS). It measures an individual's level of financial security in the face of an economic shock such as job loss or an unexpected expense.
Protection from income shocks is measured in the SFS using the proportion of individuals who are asset resilient. Asset resilience refers to having enough savings to maintain well-being for three months. More specifically, the ability of Canadians to cover unexpected expenses, or reduced income, by drawing from assets for three months. A household can be considered asset resilient when it has liquid assets that are at least equal to the after-tax low-income measure for at least three months.
For this indicator, the term "savings" refers to liquid assets. Liquid assets include bank accounts, term deposits, treasury bills, tax-free savings accounts, stocks and bonds (in mutual funds or not) and registered retirement savings plans. Liquid assets can provide some relief for families faced with a disruption to their primary source of income by allowing them to continue to meet their essential needs and financial obligations.
Data sources
Data tables and analysis
For products related to protection from income shocks, including data tables, data visualizations, articles, and other product types see Analytical releases: Protection from income shocks or view all analytical releases.
Frameworks
This indicator aligns with the following frameworks:
- Canadian Indicator Framework (CIF) for the Sustainable Development Goals
- Federal Sustainable Development Strategy (FSDS)
- FSDS Goal 1 – Reduce poverty in Canada in all its forms
- FSDS Contextual Indicator – Prevalence of asset resilience
- FSDS Goal 1 – Reduce poverty in Canada in all its forms
Additional information
The Dimensions of Poverty Hub, sponsored by Employment and Social Development Canada, tracks progress on 13 performance indicators. It is updated regularly by Statistics Canada as new data become available.
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