'The uncertainty created by COVID-19 has highlighted the importance of preparing for the unexpected'
Younger Canadians are increasingly interested in financial security, according to a report from Sun Life.
Nearly eight in 10 gen Z (81 per cent) and millennials (76 per cent) say that the pandemic has made them want to focus more on their financial security.
On the other hand, gen X (aged 40-55) and boomers (aged 56 and older) are not as concerned. Among them, only 61 per cent and 55 per cent, respectively, say the pandemic has made them want to focus on their financial future.
"Generally, the feeling of wanting to save for the future is more prevalent with older generations," says Oricia Smith, president of Sun Life Global Investments. "Due to the pandemic, we're seeing a shift in priorities. The uncertainty created by COVID-19 has highlighted the importance of preparing for the unexpected. It's encouraging to see younger generations take an interest in setting achievable goals, planning for the future and investing even a small amount of money. It will benefit them for years to come."
Overall, 80 per cent of millennials and 89 per cent of gen Z members want to protect their financial future now more than ever due to COVID-19, says Sun Life.
However, 60 per cent of millennials and 74 per cent of gen Z respondents report that the pandemic has made saving for the future difficult due to a loss of income or employment.
With many people not commuting, buying lunches or paying for childcare because they are working from home, more workers were able to save more of their paycheque in 2020 compared to 2019, according to a separate report.
Financial stress
One of the biggest issues affecting an individual’s emotional wellbeing is their financial situation, and it can have a significant influence on their performance and behaviour at work, says Jon Bird, strategic employee benefit consultant at Wingate Benefits Solutions. Financial education can help.
“Helping support an employee’s financial wellbeing through the provision of education services is an important part of any employee benefit strategy,” he says. “Financial education is more effective if it is delivered when it’s most relevant. The financial concerns and worries for someone in their early career are very different from those who are in the middle of their working lives or for those who are planning to face the transition into retirement. The ways in which the education is delivered should also be varied to reflect your employee’s requirements.”
“By offering employees help in managing their finances, employers are making a long-term investment in their workforce. The benefits of financial education are clear; helping to support employees and improve their mental health will have a positive impact on their lives as well as business.”
Half (50 per cent) workers aged 18 to 34 say they would leave their organization if they found out that a colleague of equal standing but different gender received higher compensation, according to a separate report.
