HOOPP research shows financial stress affects most workers daily, with pensions linked to lower stress levels
Financial well-being is the primary source of stress for workers aged 40 to 60, according to new research conducted for the Healthcare of Ontario Pension Plan (HOOPP).
The study found that for most people in this age group, financial concerns are a daily issue.
The study surveyed more than 2,800 participants, asking them to identify their biggest stressors.
Financial stress ranked highest, with 58 percent of respondents listing it as their top concern.
Health issues followed at 39 percent, while 37 percent cited worries about relationships or family matters. Another 37 percent identified work or school-related stress.
Additionally, 60 percent of respondents said they thought about their financial situation daily or weekly.
Researchers examined the experiences of full-time workers aged 40 to 60 who are part of a defined benefit (DB) pension plan and compared them to a separate group of workers in the same age range without a workplace pension.
Those with a DB pension reported 9 percent higher financial well-being and 10 percent lower financial stress than those without one.
Ivana Zanardo, HOOPP’s head of Plan Services, highlighted the broader impact of financial stress. “Stress – including stress about your financial situation – is a key factor influencing both physical and mental health,” she said.
She also noted that the study suggests women in the workplace experience higher levels of financial stress and lower financial well-being than men.
The study defined financial well-being as a person’s ability to meet financial obligations, feel secure about their financial future, and make choices that allow them to enjoy life.
Financial stress referred to the psychological strain linked to managing finances, such as concerns over income security, accumulating debt, or difficulties with savings.
Zanardo highlighted the role of pensions in reducing financial stress, stating, “The economic benefits of having a pension are well known and contribute to financial security in retirement.”
According to research by academics worldwide, financial stress can lead to serious health issues, but pensions help mitigate that stress.
Zanardo noted that HOOPP commissioned the study to better understand how pensions contribute positively to members’ health and well-being.
The Behavioural Insights Team, a global research firm, conducted the study for HOOPP. The research also reviewed academic studies exploring how pensions affect health and well-being.
These findings build on previous HOOPP research, which reported that a majority of Canadians feel financially unprepared for retirement.
