Financial advice: a key pillar of total wellbeing

Published on August 14, 2025

Recent shifts in trade policies combined with the rising consumer cost of living are driving major economic uncertainty.

In its initial 2025 business outlook¹ and consumer² surveys, the Bank of Canada reported that the economic uncertainty we are facing is fuelled in part by current financial, economic and political conditions.

Specifically, these conditions are impacting Canadian households’ confidence about the cost of living and the job market, resulting in declining optimism about their personal financial health.³

This should come as no surprise, as Canadian households are among the most indebted of all Organisation for Economic Co-operation and Development (OECD) countries,⁴ with a debt ratio reaching 173.9% of disposable income at the start of 2025.⁵

As a result, we see that 74% of Canadians are worried about not saving enough , while two-thirds are concerned about their long-term financial wellbeing.⁶ We believe this poses a serious risk to Canadians’ ability to save money and achieve their life goals.

In light of this, it is clear that group retirement savings plan sponsors have a crucial role to play in supporting plan members as they confront these challenges.

The consequences of financial uncertainty

Financial concerns do not stop at mere figures on a bank statement. They can also have a profound impact on people’s mental health. Stress related to personal finances can, in fact, result in anxiety, depression and a range of other mental health challenges.

According to the 2024 Benefits Canada Healthcare Survey,⁷ the main source of stress in the workplace is personal finances. And this has been a consistent upward trend among group insurance plan members in recent years, rising from 35% in 2022 to 43% in 2024.⁸

The result is often lower productivity, more days off work and even disability claims. According to Benefits Canada, 56% of employees enrolled in an employer-sponsored group retirement savings plan report a drop in productivity due to financial concerns.⁹

This as an opportunity for employers to take a leading role in supporting the financial wellbeing of their workforce.

The value of financial advice

In our view, offering employees personalized financial advice services is a key solution to support plan members in navigating these challenges.

Overall, we have found that people who work with financial advisors report improved quality of life , greater confidence in their financial skills and higher satisfaction compared to those who manage their finances on their own.¹⁰

In a 2023 survey of approximately 7,000 people across 15 countries who consulted financial professionals, the Financial Planning Standards Board, an international certification body, found that the proportion of clients reporting improvements in their total wellbeing—physical, mental, financial and social—breaks down as follows:

• Family life: 48%
• Mental health: 48%
• Job satisfaction: 37%
• Social life: 35%
• Physical health: 34%

We believe these findings leave no doubt about the positive outcomes that can result when an organization provides financial guidance to its workforce as part of a group retirement savings program.

Positive economic impacts

We also note that people’s net worth rises when they make use of financial advice. In 2018, a Canada-wide study showed that an average household that had worked with a financial advisor for 15 years or more had a net worth that was 131% higher, or more than double, that of a household managing its savings on its own.¹¹

This is not a surprise, as a financial plan developed with the help of experts helps people build a sound financial strategy and stick to it.

We believe that offering personalized financial advice tailored to each person’s unique situation can generate tangible benefits, such as:

• Improved debt management
• Better financial decision-making
• Higher rate of saving
• Appropriate choice and diversification of investments
• Effective retirement planning
• Optimal use of tax advantages

Strategies for employers

Employers who incorporate financial advice into their group plans, or improve existing services, position themselves for success.

To that end, sponsors of group retirement savings plans can leverage a wide range of products and services aligned with their organizational objectives.

On the ground, we are seeing that these types of initiatives enhance employees’ financial literacy, equipping them to make informed decisions about saving money and planning for retirement.

Here are some aspects to consider:

• Education: Organize information sessions on financial topics such as budgeting, investing, and retirement planning.
• Personalized advice: Offer personalized financial advice to help employees build financial strategies that suit their specific needs.
• Online resources: Provide digital resources, such as retirement simulators and online learning modules, to make information more accessible.
• Communication initiatives: Create accessible content in various formats—such as webinars, newsletters, videos and podcasts—to meet plan members’ needs.
• Partnering with providers: Work with financial service providers to develop strategies that boost engagement.
• Tracking progress: Monitor engagement and participation in initiatives, identify trends and ask for feedback.
• Creating a learning culture: Foster a culture of inquiry by encouraging questions, which can be used to develop targeted FAQ resources.

By adopting these initiatives, employers can not only boost employees’ financial literacy but also deepen engagement with their group retirement savings plan, while optimizing their own organizational performance in the process.

It’s a clear win-win solution for everyone!

¹ Bank of Canada, Business Outlook Survey – First Quarter of 2025.

² Bank of Canada, Canadian Survey of Consumer Expectations – First Quarter of 2025.

3 Ibid.

⁴ OECD Economic Surveys: Canada 2025.

⁵  Statistics Canada: Debt service indicators of households, national balance sheet accounts, 2025.

⁶ Are Emaciated Canadian Piggy Banks Today’s Reality?

⁷ Benefits Canada Healthcare Survey 2024.

⁸  iA Financial Group: Financial stress and mental health | Thoughts from our expert, 2025.

⁹ 2025 Employee Savings Summit | Benefits Canada.

¹⁰  Financial Planning Standards Board, 2023: Value of Financial Planning, Global Consumer Research.

¹¹ CIRANO | More on the Value of Financial Advisors, 2020.

A strategic issue

As economic uncertainty persists, financial health is becoming a strategic issue for Canadian businesses. The data speaks for itself: nearly half (46%) of those experiencing financial stress spend an average of 3.5 hours per week managing it at work.² Over a year, this can amount to up to four weeks of lost productivity.

This impacts health, absenteeism and organizational performance. I therefore believe it is essential to consider financial wellbeing as a key pillar of organizational performance and global health.

Passivity toward saving

Many people remain passive about their financial health: they contribute to their group retirement savings plan, hope for the best and wait for retirement without actively managing it.

I believe this passivity stems mainly from limited financial literacy, group plan complexity and the absence of personalized advice. In 2023, 64% of employed Canadians did not fully understand their group retirement savings plan.³

In 2025, 36% of Canadian adults do not know how to access reliable financial advice, and 41% do not know how to improve their situation.⁴ This can prevent people from making the most of their group plan, leading to uninformed decisions, greater stress and inadequate retirement preparation.

The group plan, driver of financial literacy

Financial literacy empowers people to achieve autonomy and make informed decisions. We believe that organizations investing in financial education enable their teams to maximize their chances of reaching their financial goals.

Employers have a key role to play: they can support employees in managing savings and retirement, and 79% recognize the importance of integrating financial education into group plans⁵ :

• To maximize impact, I recommend integrating financial education into staff communications and offering workshops, interactive tools and personalized advice.
• An education team that offers guidance and information can help alleviate financial stress and foster talent retention and loyalty.

The benefits of personalized financial advice

I believe that financial advice specialists help people make sound choices, reduce stress and aim for lasting financial health.⁶

Personalized financial advice can help people improve their quality of life, boost their confidence and increase job satisfaction.⁷

In 2025, 74% of employed people worry about not saving enough, while 66% are concerned about their financial wellbeing.⁸ I believe that sound advice can turn a complex situation (such as buying a home or preparing for retirement) into a realistic and motivating plan.

Winning solutions

Integrating financial health into a total wellbeing strategy—alongside mental, physical and social health—is no longer optional: it is essential for any organization aiming for sustainability and excellence.

I believe that investing in financial health is a strategic decision with several advantages:

• Increasing productivity
• Reducing absenteeism and health costs
• Strengthening engagement and motivation
• Enhancing employer brand perception

I’ve observed that understanding and effectively using the group retirement savings plan also strengthens loyalty and engagement with the employer. In my view, the evidence is clear: financial wellbeing can reduce stress, increase satisfaction and loyalty, and lower staff turnover.

My recommendations

An approach focused on financial wellbeing, supported by greater financial literacy and personalized guidance, can turn passivity into engagement and optimize organizational performance.

Supporting financial literacy, investing in personalized solutions and measuring the impact of such initiatives on people’s engagement with their financial health make financial wellbeing a strategic advantage for organizations.

¹ Financial Stress Index | FP Canada 2025

² Financial Consumer Agency of Canada: Infographic: calculating the cost of employee.

³ Retirement and Savings Institute, HEC Montréal: The State of Canadians’ Knowledge of Their Retirement Income System

⁴ Financial Stress Index | FP Canada 2025.

⁵ Benefits Canada : 2025 Employee Savings Summit

⁶ iA Financial Group: Financial advice: a key pillar of total wellbeing

⁷ Financial Planning Standards Board, 2023 : Value of Financial Planning Consumer Study, Global Report

⁸ Bloomberg : Personal finances: Canadian workers saving more but stress at work