Financial Wellbeing Index Canada: Spring 2021
Spring 2021 Highlights
More than one year into the COVID-19 pandemic, there has been an increase in saving according to the Mental Health Index™. Despite the improvement, more than half of employed people either have no emergency savings (28%) or limited savings that would cover less than two months of essential expenses (26%). Regardless of income, emergency savings is one of the strongest drivers of mental health.
- In terms of the location of residence, the lowest financial wellbeing is seen in the Maritimes, followed by Saskatchewan, Manitoba, and Alberta. While all provinces perform below the benchmark, Alberta, Newfoundland and Labrador, Ontario and British Columbia all showed improvements in April.
- Women have lower financial wellbeing, financial knowledge, financial behaviour, and financial perception scores than men.
- Financial wellbeing scores improve with age as do financial knowledge, financial behaviour, and financial perception scores. Workplace productivity is also more significantly impacted by finances among younger people.
- Full-time post-secondary students have the lowest financial wellbeing score. In addition, for the eleventh consecutive month, full-time post-secondary students have the lowest mental health score, and the most significant increase in mental stress.
Financial instability impacts work productivity
- Nearly 1 in 3 (30%) of Canadians indicate that their financial situation is currently impacting their work productivity.
- Younger people are struggling more across all areas of financial wellbeing and their work productivity is being negatively impacted.
- The productivity score for parents (-8.6) is nearly ten-points lower than for people without children (1.2).