The stressors having greatest impact to workers include student loans and mortgages, healthcare costs and an unsettled feeling that one has not done enough to prepare for retirement, a survey finds.
When it comes to the workplace, the State Street Global Advisors (SSGA) survey finds nearly 60% of employees are emotionally stressed and distracted by their financial situations; 37% acknowledged financial stress has caused their productivity at work to suffer; 25% have missed work due to stress that stemmed from their personal financial situations; and nearly 50% are living from paycheque to paycheque.
Read: Retirement plan members face financial stress
Other key findings of the survey include:
- Lack of a safety net: More than half of the respondents were confident that they could pay for a financial emergency costing up to $1,000.
- The shifting debt burden: Mortgages, car loans and credit cards carry the heaviest debt burdens for the majority of respondents, however, debt patterns shift through life phases from auto/student loans to credit cards to a mortgage, and lastly loans for their children’s education.
- Only if it’s free: Most respondents cited high cost and lack of convenience as the top the reasons for not engaging in a financial wellness program.
- Generation Xers are eager: According to the survey, 30 to 39 year olds would be the most likely to take advantage of employer sponsored programs including automatic savings programs, budget workshops, stress management courses and one on one financial planning assistance.
Read: Money worries stress out Canadians
“Eventually, employees’ financial problems will affect their productivity; our survey underscores the importance of the fact that financial wellness is now part of nearly all of our conversations with employers,” says said Fredrik Axsater, global head of SSGA defined contribution. “By providing employees with access to resources and tools that enable them to improve their financial lives and alleviate daily financial stress, plan sponsors can then refocus their employee’s attention and actions towards retirement savings and security.
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