Working While Worried

Why Financial Stress Is a Culture and Productivity Issue

In our previous articles, we explored how plan structure, investment flexibility, and employee education can bridge the gap between employer strategy and employee needs. But there’s another critical piece we haven’t addressed yet…how financial stress is showing up at work.

According to multiple industry reports, financial stress remains the top personal concern that employees bring with them into the workplace. It’s not something people can leave at the door. The pressure to make ends meet, save for retirement, or plan for the future follows them into meetings, performance reviews, and even health decisions.

This is no longer a personal issue. It’s a business issue.

What's at stake

When employees are under financial strain, it directly impacts:

  • Productivity: Mental distractions, absenteeism, and presenteeism increase.
  • Retention: Employees may seek higher-paying roles even if the total compensation is better where they are.
  • Engagement: Financial stress reduces confidence and increases the risk of burnout.

The root of the issue

Too often, employers try to solve for the symptoms. They introduce surface-level perks, rely on underused programs like EAPs, or assume that one-size-fits-all benefits are enough.

But what employees really need is clarity, structure, and a plan.

They want to understand:

  • Am I saving enough?
  • Do I have the flexibility to make adjustments if the market changes?
  • Will I be okay when I retire?

When plans lack flexibility, or when communication is poor, stress increases.

This is a cultural challenge

A healthy company culture is one where employees feel secure, valued, and confident in their future.

Financial stress undermines all of that.

Employers who prioritize benefits that address long-term financial wellbeing such as strong Capital Accumulation Plans (CAPs), clear retirement support, and access to personalized education are better positioned to foster engagement and retention.

The good news?!

Financial stress is fixable.

Here’s where the solution begins:

  • Design your plans for today’s reality. That includes offering broader investment choice and regular reviews of plan structure.
  • Acknowledge the importance of financial wellbeing. Don’t bury it under more visible perks or hot trends.
  • Educate with intention. Your employees can’t act on what they don’t understand.

We’ll dive into mental health and proactive support strategies in our next article but it starts here. Because before stress becomes a crisis, it’s a conversation about structure, support, and whether your benefits are designed to meet the moment.

Want help assessing where your plan stands today? Let’s talk.

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Employees Want Financial Guidance. Employers Aren’t Prioritizing It.

Stressed out woman

Persistent gaps between employee priorities and employer strategies continue to limit the value of retirement and benefit plans.

In our recent articles, CAP Guidelines Set the Standard and Is Your CAP Built to Withstand Market Uncertainty?, we explored how plan design and investment flexibility are essential for helping employees navigate today’s economic volatility.

What the ongoing research continues to reinforce is this:
Employees are prioritizing long-term financial wellbeing while many employers are still focused elsewhere.

Let's look at the numbers

According to the 2024 WTW Global Benefits Attitudes Survey:

  • 78% of employees across North America say they are not saving enough for retirement

  • 59% of employees rank financial wellbeing as one of their top concerns

  • Yet only 22% of employers are prioritizing financial wellbeing in their strategy

  • Only 36% of employees feel confident they are on track to retire

  • 33% say they are worse off financially than they were a year ago

This disconnect is not subtle. It is measurable and it has real consequences for engagement, retention, and plan effectiveness.

While many employers continue to focus heavily on traditional health benefits or surface-level perks, employees are asking for something different: clear, practical support for long-term financial health.

This is a Strategic Opportunity

Financial stress often stems from uncertainty. Employees want to know:

  • Am I saving enough?

  • Are my investments aligned with my future goals?

  • Will I be okay when I retire?

These are fundamental questions and too many benefit strategies are not built to answer them.

Addressing this disconnect is the first step!

Education and clarity can only follow when your strategy aligns with what employees truly need.

When employers realign their approach to reflect employee priorities, they unlock more potential in every compensation dollar being spent.

Next Comes Education

Capital Accumulation Plans (CAPs) are a critical tool for long-term planning. But without a clear structure and aligned communication, they fall short. A well-structured CAP, combined with a strategy that reflects employee priorities, provides a pathway to greater confidence, stronger engagement, and better long-term outcomes.

This is where education comes in but only after the plan is designed with purpose.

Employees can’t act on what they don’t understand, and they won’t engage with tools that feel disconnected from their concerns.

The Bottom Line

Employees are telling us what they want.

Support with retirement. Guidance on saving. Clarity around long-term financial health.

If your benefit and retirement plans aren’t built with these priorities in mind, the next step isn’t a brochure or a seminar. It’s a conversation about structure, alignment, and whether your current strategy is truly working for the business and its people.

Once that foundation is in place, then you can give employees the education and tools they need to take control of their future with confidence.

Send us a message if you want to connect. Otherwise, get a copy of the full survey by request below. 

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Is Your CAP Built to Withstand Market Uncertainty?

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Is Your CAP Designed for This Market?

Canada’s exposure to the U.S. economy is significant.

Before we dive in, let’s quickly revisit what we mean by a Capital Accumulation Plan (CAP).

A CAP is a retirement savings program designed to help employees build long-term financial security. Contributions are typically made by both employees and employers, and the funds are invested over time. 

Examples of a CAP with a retirement savings/income focus may include the following plans or arrangements provided for employees or members: defined contribution pension plan (DCPP) with or without post-employment variable benefits options, registered retirement savings plan (RRSP), deferred profit-sharing plan (DPSP), locked-in retirement account (LIRA), registered retirement income fund (RRIF), life income fund (LIF), PRPP, VRSP, and Tax Free Savings Account (TFSA). Examples of a CAP without a retirement savings/income focus include registered education savings plan (RESP) and First Home Savings Account (FHSA).

In today’s environment of rising trade tensions, geopolitical volatility, and unpredictable markets, plan sponsors face a growing challenge: ensuring that their CAP offers a strong range of asset classes, geographic exposure, and investment styles.

The goal? Helping employees manage risk, reduce volatility, and continue pursuing long-term returns.

What the numbers tell us

Roughly 25% of our Canadian GDP is tied directly to exports across the border. With tariffs and political uncertainty making almost every headline, many are asking: What impact will this have on my investments?

For members in a CAP, the answer depends on how much flexibility their plan allows.

Too often, investment menus are limited. This approach might work in ideal market conditions, but we are currently facing anything but.

In fact, beyond limited investment choices, the default investment option itself may have a geographic makeup and asset mix that is increasing risk for your employees.

At a time when geographic risk matters more than ever, employees need options that reflect today’s realities.

This includes the ability to distinguish and choose between Canadian, U.S., international, and global investment options, as well as access to both passively and actively managed investments.

This a critical strategy for helping to reduce market volatility during these uncertain times.

Is your plan equipped for volatility, or relying on outdated defaults?

Your business and team deserve more than a set-it-and-forget-it solution.

We like to understand what our plan members are truly willing to accept when it comes to investment risk.

While assumptions are often made based on age, this can overlook what really matters:

  • Does the member understand the risk?

  • Can they afford volatility right now?

  • Do they feel confident making changes when the market shifts?

This is where the CAP plan design and employee’s access to financial education intersect. 

A big part of a well thought out Capital Accumulation Plan includes:

  • Regularly reviewing investment options and asset class availability

  • Evaluating whether plan provisions are still appropriate

  • Ensuring employees have both the guidance and the confidence to make sound decisions

  • Providing meaningful financial education, tools, and access to full financial planning through advisors qualified to deliver comprehensive guidance with the goal of reducing employee stress and anxiety related to their finances.

It’s time to move beyond minimal requirements.

Plan sponsors have the opportunity to deliver smarter, more resilient solutions that reflect both the world we live in and the pressures their people are facing.

I want the best for my team. Let's connect.

CAP Guidelines Set the Standard

CAP Guidelines Set the Standard

But what is your provider doing about it?

We believe the updated guidelines from CAPSA regarding the CAP (Capital Accumulation Plans) Guidelines addresses concerns about ongoing suboptimal plan member outcomes, emphasizing the need for additional advice and services to drive improvement.

In recent years, investment regulators have introduced additional requirements for financial advisors and planners to enhance transparency in areas such as fees and conflict-of-interest disclosures.

Similarly, we believe the 2024 CAP updates aim to standardize practices, ensuring Canadian investors receive consistent, high-quality service regardless of where their investments are held.

The numbers tell the truth

While the 2024 CAP guidelines offer clear steps for plan improvement, it’s essential to understand the real-world challenges plan members face. Financial stress continues to be a dominant concern for Canadians, shaping their well-being and retirement readiness. Plan sponsors are increasingly seeking insights into the financial issues that cause the most stress to identify meaningful solutions for their employees.

Three years in a row, Canadians say money causes them the most stress in life. There is a significant four-point increase in the number of Canadians who say that money causes them the most stress. BIPOC Canadians, those <55 and those earning <50K in annual household income are more likely to say money causes them the most stress. 29% of retired Canadians report that money is their main stressor. ¹

Capital Accumulation Plans play a crucial role in the broader context of compensation, a fact recognized by both plan sponsors and members. The following data sheds light on specific financial stressors, with a particular focus on challenges faced by younger generations.

Historically, less emphasis has been placed on the dual-purpose planning capabilities of CAPs, underscoring the need for plan sponsors to thoroughly review their plans. By doing so, they can ensure their CAPs deliver value across all generational cohorts within their organization.

The root causes of financial stress become clear when we examine the top financial pressures facing Canadians today.

Bill payments, saving for retirement and saving for a major purchase are the top three financial stressors for Canadians.

37% are stressing about bill payments/expenses, roughly a one third are stressed by saving enough for retirement (35%), saving enough for a planned major purchase (31%) and/or by their debt (30%). Roughly two-in-ten stress about job/ income stability (21%), lack of control (15%) and/or investing (15%).²

Why does this matter?

Because despite the updated CAPSA guidelines and growing attention on financial wellness, there’s still a major disconnect between what plans are designed to do and what members actually experience.

We have compliance frameworks.
We have plan structures.

But what we don’t always have is engagement, education, or meaningful outcomes.

Too often, members are not given the right choices or the tools, advice, or context they need. 

That’s our mandate at BFS Benefits & Retirement: to ensure everything is working as it should—benefiting both the business and its employees.

Ongoing financial stress, missed retirement goals, and a growing sense of uncertainty—especially among the most vulnerable demographic groups.

Without impactful plan design, proactive support, personalized guidance, and a commitment to long-term financial literacy, the potential of your business and team is left on the table. 

If you ready to change that, it’s time to talk to us. 

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