- Have a question?
- 613-89-Prime (77463)
- 1-866-950-3667
- info@primebenefitsgroup.com
Benefits to Ease Employee Financial Stress in the Face of Inflation
The cost of living in Canada has soared over the past few years. Consumers face rising prices at grocery stores, gas stations and at almost every other place in between. Over 85 per cent of Canadians are worried about inflation making everyday expenses less affordable. In April, inflation figures showed a slight shift to 2.7 per cent, compared to 2.9 per cent in March, marking the lowest rate in three years. While Canadians hope for decreases in the benchmark interest rate and some relief from the escalating cost of living, many employees say they still worry about saving enough money throughout their lives.
Financial Fears
A recent survey suggests a significant increase in the number of Americans who worry about running out of money more than they fear death, rising from 57 per cent in 2022 to nearly two-thirds this year. Generation X is most likely to be worried, more than millennials and baby boomers. High inflation is a major factor contributing to this sense of anxiety, with many Gen Xers worried about not being able to save enough money for retirement.
Gen X respondents highlighted the challenge of setting aside extra funds because of their growing financial responsibilities. Many expressed concerns stemming from caring for both children and elderly parents, as well as managing car payments and mortgage payments. For those with older children, the financial burden of student loan payments further compounds their expenses.
Employer Support for Financial Wellness
One survey finds nearly half of Canadian pre-retirees have less than $5,000 in savings. The prospect of running out of money in retirement can be daunting and it’s important to have a plan. Apart from creating a budget, cutting unnecessary expenses, and prioritizing debt repayment to allocate more funds towards retirement, Canadians should have the option to turn to their employers for some support.
Here are a few ways employers can help their workforce build and manage financial plans:
- Retirement Saving Plans: Employer-sponsored retirement savings plans, such as a Registered Retirement Savings Plan (RRSP) or Group RRSP, provide employees with a tax-efficient way to save for retirement. Contributions to these plans can help mitigate the impact of inflation on long-term savings goals.
- Matching Contributions: Employers offering matching contributions to retirement savings plans incentivize employees to save more for their future. Matching contributions increase the amount of money employees can put towards retirement, improving their financial security.
- Health and Wellness Benefits: Comprehensive health benefits, including extended health coverage, dental plans, and mental health support, can help employees manage healthcare costs and reduce financial stress, especially during times of economic uncertainty.
- Financial Resources: Employers can offer financial literacy programs, workshops or one-on-one counselling to help employees improve their knowledge and skills. Confidential financial counselling and support services can also be provided through a comprehensive Employee Assistance Program (EAP).
Securing Financial Futures
By offering a range of supportive benefits, employers can give their teams the knowledge and tools they need to face inflationary pressures with confidence. Contact us so we can work together to create strategies that work best for you and your team.
Suggested Reading