Since reaching a peak of 65.2 in July 2023, the overall score of the TELUS Mental Health Index has been slowly but surely declining. It dropped to 64.4 in September 2023, compared to 64.6 in August 2023. Anxiety and isolation remain the lowest secondary scores for the seventeenth consecutive month.
Unveiled by TELUS Health (formerly known as LifeWorks) in the same report, the Financial Wellbeing Index stands at 63.3 in September 2023, up from a score of 61.3 recorded in February 2023. However, the report notes that the current level of the Financial Wellbeing Index remains below the 65.0 level observed in the July 2022 index. The Financial Wellbeing Index is one of the secondary indices of the Mental Health Index.
According to the TELUS Health report, 30% of workers want benefit plans that include financial planning assistance.
"The current economic landscape has workers concerned about their financial futures and looking for advice on how to navigate a path forward," explained Juggy Sihota, Chief Growth Officer at TELUS Health, in the index report press release.
Heavy inflation
Inflation weighs on many of them. The Mental Health Index report reveals that 29% of workers fear they will not be able to cope with inflation. Additionally, 20% fear they won't have enough money to retire, and 11% are concerned about their debts.
According to the Bank of Canada, the inflation rate measured by the Consumer Price Index fell to 3.8% in September 2023, compared to 4.0% in the previous month. However, it remains high compared to the central bank's target, which aims to keep the inflation rate within a range of 1% to 3%. Meanwhile, it has maintained its key interest rate at 5.0% since July.
Retirement at risk
Concerns also weigh on retirement. Seven out of 10 workers are not certain how much they need to save to maintain the lifestyle they desire during retirement (47%), or simply do not know (23%).
Moreover, 25% fear they will not be able to retire. These workers score the lowest in mental health, at 49.2. They also score the lowest in financial well-being, at 44.2.
Survey participants are 74% in favor of their employer offering a retirement savings option. 39% allocate less than 10% of their income to savings, while 18% do not save at all.
Workers without an emergency fund are twice as likely as those with one to fear they won't be able to retire. Workers with an emergency fund score 70.3 in mental health, while those without one score 49.3.
Mental health support
For 18% of workers, the most important aspect of a benefits plan is unlimited mental health coverage.
Workers under 40 are two and a half times more likely than workers over 50 to prioritize benefits that include parental coverage.
"From the responsibilities of caring for children, aging parents and loved ones, to the aspirations of homeownership and retirement, preparing for the future can impose significant stress for people, both mentally and financially. Without a clear roadmap, the journey can often feel overwhelming," notes Paula Allen, Global Leader, Research and Client Insights, at TELUS Health.
Ms. Allen regularly observes a striking correlation between the lack of emergency savings and low mental health scores. This, she says, illustrates the crucial importance of providing people with the necessary resources to prepare. The index shows that women, parents, and young people have lower financial well-being scores than other groups.
Advice problem
The financial fears of February have not faded, despite an increase in the index in September. The February 2023 Financial Wellbeing Index was also the subject of a special report related to the February 2023 Mental Health Index. This one already revealed that Canadian workers feel uncertain about their financial future.
It also revealed that 26% of workers are unsure if they will be financially comfortable in the future. Additionally, 45% of index survey participants said they felt overwhelmed by their debts. Nearly a third of these Canadians who have not received advice or support to manage their debts, 21% stated as a reason that they were not comfortable talking about it.
