Unsurprisingly, financial stress impacts work life

Financial stress has a serious impact on Canadians’ work life. According to the 2016 Sun Life Financial Canadian Health Index, almost one-third (29 per cent) of Canadians are distracted at work as a result of their financial situation.
Three of the four top drivers of uncomfortable levels of stress for Canadians are all related to financial challenges:
  • 45 per cent worry about personal/household finances;
  • 32 per cent worry about trying to maintain a budget; and
  • 31 per cent worry about unexpected expenses.
One-third of Canadians also report feeling insecure about their overall financial health. When asked what the largest barriers to improving their situation were, respondents said:
  • Current income (48 per cent);
  • Current debt level – mortgage and credit cards (25 per cent); and
  • Current employment situation – contract and temporary work (24 per cent).
“Financial health is an important component of our overall health and wellness because it has a direct impact on our day-to-day lives, at work and at home,” explains Kevin Dougherty, President, Sun Life Financial Canada. “Canadians are balancing competing priorities when it comes to their finances, especially as we head into the holidays. While it’s important to understand how to budget, plan for retirement, manage debt and be prepared for the unexpected, it’s not always easy to do this on your own. Working with a financial advisor can help build a lifetime of financial security and well-being.”
Getting on the path to financial security can seem intimidating. The below tips can help Canadians on their journey:
  • If your employer offers a workplace pension plan with a matching component, contribute the maximum amount possible;
  • If you don’t have access to a workplace pension plan, you can work with a financial advisor to create a retirement savings plan through annuities or segregated funds;
  • Start saving and investing as early in life as possible to set yourself up for success in all your financial needs. RRSPs and TFSAs are great vehicles to consider first.
  • Having a financial plan in place can help outline where you are, where you want to be and how to get there. A plan can also help reduce uncertainties, especially during times of economic volatility.
  • Setting a realistic and attainable budget can help you pay down debt and save for the short-term and long-term.
“Employers have a role to play in supporting their employees’ financial health,” Mr. Dougherty explains. “Offering workplace savings plans, access to a qualified financial advisor and encouraging participation in financial education programs can help reduce stress in the workplace. This access and opportunity to save can help build a healthier and more engaged organization.”
For more key findings and results on the 2016 Sun Life Canadian Health Index, visit www.sunlife.ca/CanadianHealthIndex. For more information on healthy living and financial planning, visit Learn and Plan.