New study shows better financial situation but increased stress for Canadians

1. Financial situation has improved, but tensions have increased: Seven out of ten respondents said they are in good or better financial shape than they were before the pandemic. However, 30% of Canadian workers surveyed – more than twice as many as in the previous survey – reported more severe stress during the pandemic than before.
2. Mental health still affected during the pandemic: COVID-19 has had a dire impact on the mental health of employees, with 36% citing personal finances as the root cause of their stress; This is in addition to workload (34%), relationships (31%) and work-lifestyle balance (30%).
3. Financial stress is rampant both at home and at work: 60% say they worry about personal finances at work at least once a week. Of those who worry about personal finances, nearly seven out of ten believe they will be at least somewhat more productive if they don’t take the time to worry at work.
4. Retirement plan participants are taking better care of their finances by: By reviewing their credit reports and scores, more people were able to have better control over their finances. Three out of five said they would retire on time or earlier than their plan. Those with a financial wellness plan provided by their employer were more likely to say they intended to retire earlier than employed (11% versus 4%).
5. Employees are concerned about basic needs (health care and daily expenses) in retirement, but are unsure whether they are on track: Less than half of survey participants have a comprehensive financial plan for retirement, and seven in ten have at least moderate interest in hearing planned recommendations on Canada pension plan strategies.
6. Gender plays an important role on emotions when it comes to financial status: Women are less comfortable with their debt levels (36%, versus 46%) and more concerned about basic costs such as food, transportation and retirement taxes (29% versus 22% of men).

This year’s findings are a confluence of trends that have raised awareness of the volatile nature of workers’ finances. Nearly half of employees want security in their financial decisions and want to give their employers the opportunity to review programs that better support the well-being of their employees and the company.

The value of employer-funded retirement programs is widely recognized and 84% consider it a significant benefit to the company. Three-quarters of respondents said that financial wellness programs have at least some effect on reducing financial stress, having a positive effect on productivity, referrals to one’s company, or staying at their current job.

Marchand said, “Less than half of respondents said they have a comprehensive financial plan for retirement and half expressed a desire to be more confident about financial decision-making, given the potential impact of offering an expanded financial wellness program in the workplace.” is clear.”