Canadian employees are claiming for mental health support at a much faster rate than before the pandemic, with younger workers driving the increase, according to new research from Sunlife.
Sunlife’s latest Designed for Health report found that mental health practitioner claims have risen nearly 3.5 times since 2019. The share of employees making such a claim has risen about 2.5 times. Among employees under 30, mental health practitioner claims have more than tripled.
“It’s a clear signal that younger employees are seeking appropriate care earlier, before their health needs become more complex,” said Erin Crump, vice-president of market development at Sunlife Health.
Sunlife said greater awareness, better access to care and reduced stigma may all play a part, but that claims data also points to significant and increasingly complex health needs.
More employees are also using medications to treat diabetes, depression, high cholesterol and high blood pressure. Sunlife said these conditions often require long-term care and can affect attendance, productivity and financial resilience.
The insurer linked health and financial security. One in three Canadians living with diabetes said the condition makes it harder to save, and 28% have delayed major life goals.
Sunlife’s separate Designed for Savings report found that average workplace savings balances have grown by more than 30% in nearly every industry since 2022. More than half of plan members surveyed said workplace savings are a main source of their retirement income. Members of capital accumulation plans who retired in 2025 did so at an average age of 63.7, compared with a national average of 65.1 and a private-sector average of 66.
Joe De Dominicis, vice-president of market development for group retirement services, said well-designed plans, practical guidance and continued engagement could help more Canadians turn the intention to save into better outcomes.
For group benefits advisors, the claims data has direct cost implications. Mental health practitioner claims rising 3.5 times in seven years means that paramedical maximums set before the pandemic are likely to be used up faster, and plan sponsors may see higher renewal costs as experience rises. Advisors may need to review whether current maximums still match demand, and whether employee assistance programs or virtual care can provide earlier, lower-cost support.
Chronic condition drugs add to the pressure on drug plans. Diabetes and related medications are among the fastest-growing cost areas for many Canadian plans, and sustained use means the costs build year after year. Advisors should look at plan sponsors’ drug management tools, including formulary design and pooling arrangements for high-cost claims.
The rise in claims among younger employees is also relevant. Employers competing for younger talent may view strong mental health cover as a recruitment and retention tool. Advisors who can show how plan design affects both cost and engagement will be well placed when sponsors face tighter budgets.
