Beneva is warning that financial stress has become a meaningful health indicator for working Canadians, as inflation, housing costs and economic uncertainty continue to weigh on households even as headline price growth moderates.
The Quebec-based mutual, formed from the 2021 merger of La Capitale and SSQ Insurance, has released its latest "Connecting the Dots" Health Report. The study examined group insurance usage trends by age cohort and links financial pressure to health behaviors, care needs and the employee experience across the life cycle.
Beneva’s analysis suggests that while financial stress looks different at various ages, the trajectory is broadly similar across generations, with pressures accumulating rather than resetting at each stage.
Among young adults aged 18 to 30, rising living costs, housing challenges and job insecurity are cited as key drivers of early financial anxiety. Even as Canada’s overall inflation rate has moved closer to the Bank of Canada’s 2% target, shelter costs remain a major contributor to inflation and a source of strain, particularly for renters and first-time buyers in large urban centres. Beneva linked these pressures to increased demand for rapid access to psychological support and greater recognition of mental health needs in this group.
For mid-life adults aged 31 to 50, the report pointed to a compression of responsibilities - mortgages, children, aging parents and career demands - that amplifies time pressure and complicates access to care. Delays in seeking treatment can allow conditions to worsen, driving higher claim costs and longer work absences.
Pre-retirees aged 51 to 65 are more focused on long-term income security and the consequences of financial decisions made later in their careers. In this segment, the intersection of chronic illness risk, more complex treatment pathways and limited financial flexibility becomes critical. Beneva noted that finding a workable balance between health, work and retirement planning is increasingly challenging as lifespans and care needs lengthen.
Across all age groups, a diagnosis of critical illness is highlighted as a major trigger for immediate financial stress, income disruption and unexpected out-of-pocket expenses. The report argued that this underscores the need for coverage and support structures that extend beyond the acute phase of treatment and can respond to longer-term support needs.
Beyond generational differences, Beneva identified several structural trends, including rising healthcare costs driven by chronic disease claims, a growing emphasis on prevention and the importance of prompt access to care. These patterns are consistent with broader Canadian market data showing group health trend rates outpacing general inflation, with mental health services among the fastest-growing expense categories.
Beneva argued that while cost pressures may appear most acute among veteran employees, many of the underlying issues, such as stress, unhealthy lifestyle habits and limited early support, are visible much earlier in careers. That has implications for how plans are designed, communicated and funded over time.
"Financial pressure is no longer a peripheral issue," said Eric Trudel, executive vice president and leader, group insurance at Beneva. "It directly shapes mental and physical health, with actual impacts on absenteeism, presenteeism and productivity."
The report noted that use of employee assistance programs typically peaks in mid-career, but Gen Z workers are already signalling rising demand for mental health and financial counseling services. Beneva’s Health Trends and Insights data suggests that well-structured group insurance programs can have a positive effect on prevention and overall balance throughout the life cycle when they are designed with that goal in mind.
The findings come at a time when benefit cost pressures and employee expectations are both increasing.
Surveys of Canadian employers pointed to rising benefit costs as a primary factor shaping benefit strategy, even as organizations also reported heightened expectations around mental health, financial well-being and flexibility in plan design. Consultants and carriers have been warning that without greater investment in prevention, mental health support and early intervention, plan sustainability will be at risk as chronic conditions and high-cost therapies become more prevalent.
For plan sponsors, the report reinforces several strategic considerations. Financial well-being and mental health supports are increasingly intertwined and may need to be integrated rather than managed in separate silos.
Benefit designs that flex over the life cycle - supporting younger workers’ mental health and financial literacy, mid-career caregiving and access challenges, and pre-retiree chronic care and income concerns - are likely to be more sustainable than one-size-fits-all arrangements, according to the study.
