Nearly half of workers in Canada are feeling overwhelmed by debt

A new survey indicates 26 per cent of workers in Canada are unsure if they will be financially comfortable in the future.

The TELUS Health (formerly LifeWorks) special report on Financial Wellbeing as part of its Mental Health Index released on Thursday, said found:

• The Mental Health Index score for February 2023 is 62.9 points out of 100, a noteworthy decline of almost two points from January 2023, which is the largest decline in a single month since April 2020;
• The Financial Wellbeing Index score for February 2023 is 61.3 points out of 100, a more than two-point decline from July 2022;
• 45 per cent of individuals have felt overwhelmed by debt;
• 61 per cent of workers in Canada who have felt overwhelmed by debt have not reached out for financial advice or coaching for debt, with 21 per cent citing feeling  embarrassed as their reasoning;
• Of those who have reached out for financial advice or coaching for debt, only four per cent have done so through their employee and family assistance program (EFAP);
• 40 per cent of workers in Canada report automatic savings/investment plans would be valuable if offered by their employer;
• 13 per cent of individuals report personal financial advice would be the most valuable if offered by their employer, followed by 12 per cent who report a hardship or emergency fund would be most valuable.; and
• 36 per cent of individuals would leave their employer for another if they offered a guaranteed income pension plan.

“This month, we saw the largest decline in mental health scores since April 2020. Many signs point to the rise in inflation as the main reason for this drop, given we know how important a sense of personal control is to mental health and wellbeing. The economic changes, on top of existing challenges we’ve been facing over the past three years, have made nearly half of workers in Canada more sensitive to stress. Resources such as employee assistance programs and financial wellbeing programs have never been more important; however many are under-communicated. This is the time to change that,” said TELUS Health Global Leader, Business & Client Insights, Paula Allen.

The full report can be found here.