Employer benefit plans play increasing role in wellbeing
The rising debt burdens faced by older millennials is weakening the financial health of this core cohort of working-age Canadians.
A new report from RBC Insurance reveals that just 44% of those aged 35-44 feel confident in their current financial situation, with many of this group struggling with the cost of living and feeling overloaded with debt.
Recent data from RBC Economics shows that this demographic had a total debt-to-disposable income ratio of 250% in 2019 – compared to roughly 150% with the same age group in 1999.
And things are about to get worse with those who need to renew their mortgage potentially facing a 25% increase in monthly payments.
Employer-provided benefits
The report shows the positive impact of employer-provided benefits, which are playing an increasingly important role in both financial wellbeing and overall wellbeing.
Across all adult age groups, 66% of those with access to employer-provided benefits rate their overall wellbeing as good or excellent compared to under half (49%) of those without these benefits.
Those with benefits reported better mental health (65%) than those without (51%) and said that their employer helps them to have work/life balance (81%).
Overall financial health of those with benefits was reported to be good or excellent by 54% compared to just 33% of those without who said this. But those on lower incomes, below $40K, are less likely to have employer-provided benefits (44%) than those earning $60-100K (83%).
Most respondents said they are satisfied with their benefits, and this is intensified by those who have tailored benefits and for those who understand what is offered to them.
The most-in-demand benefits are:
- access to doctors and specialists (73%)
- online pharmacies (72%)
- online prescription glasses (65%)
- online mental health and wellness programs (61%)
- services for wellness and management of chronic diseases (57%)
"There is a sense of stability that comes with knowing that your needs and the needs of your family will be taken care of in case of the unexpected, and that definitely contributes to feelings of overall well-being," says Andrejka Massicotte, head of Group Benefits, RBC Insurance. "Considering all of the possible situations that can happen in life, having comfort that you will be able to focus on recovery rather than the cost of care if you get sick, or that you will be able to access mental health supports and services and well-being programs if you need them, can have a very positive impact on your financial and mental health. Group benefits offer a peace of mind that allows you to focus on the important things in your life."
