Manulife says economy is straining employee mental health and employer bottom lines

The third annual Manulife retirement survey, Stress, finances and well-being, shows the economy taking a toll on Canadians’ financial and mental health, and also on employers’ bottom lines.

“Financial progress gained during the pandemic has declined in the past year with only one in five Canadian workers describing their financial situation as strong and two in five describing it as fair or poor,” the company states in an announcement about the publication of the survey’s results.

Of the 1,551 surveyed, 71 per cent say their mental health has interfered with their ability to work in the past year. Manulife estimates that employee stress can cost employers close to $2,000 a year, per employee.

Of those surveyed, 70 per cent say they’re worried a great deal about the economy. “Nearly all respondents have taken note of rising costs in the past six months,” they add. More than half, 53 per cent of respondents were worried a great deal about aspects of their personal financial situation. Credit card debit was cited as a concern by 40 per cent of respondents, not having sufficient emergency savings was mentioned as a concern by 30 per cent and not having enough retirement savings was a concern for 29 per cent.

“These financial worries are coupled with a noteworthy decline in workers’ financial situations. Employees surveyed are now nearly twice as likely to describe their personal finances as fair or poor than they are to call them very good or excellent.” All told, they say there was a 10 per cent increase in the number of respondents who considered their finances to be in fair or poor shape and an 11 per cent decrease in the number of those who considered their financial situation to be excellent or very good.

“Those who have one-on-one support from a financial advisor are significantly more likely to say they have a very good or excellent financial situation,” they conclude. They are also likely to feel better about their finances when they have access to workplace financial wellness resources, and review and engage with their retirement plans regularly.