Cost of Living Tops Financial Stress for Canadian and UK Workers, TELUS Health Index Finds

Financial Stress and Productivity

The cost of living has emerged as the primary financial stressor for a majority of workers in Canada and the United Kingdom, according to the latest TELUS Mental Health Index released by TELUS Health. In Canada, 63 per cent of workers identify cost of living as their main financial stressor, far outpacing concerns about retirement savings (12 per cent) and emergency savings (8 per cent). The index also found that one in five Canadian employees report that financial worry has directly impaired their productivity at work, with 5 per cent missing work entirely due to financial anxiety.

Similarly, the UK edition of the index reports that 62 per cent of workers cite the cost of living as their top financial stressor, ahead of retirement savings (12 per cent) and emergency savings (8 per cent). Seventeen per cent of UK workers say their personal financial situation has negatively impacted their work productivity, a group that scores nearly 26 points lower on the index than workers reporting no productivity impact and more than 18 points below the national average.

The findings underscore a broader trend of financial anxiety affecting the workforce. In the UK, 62 per cent of workers feel worried or anxious about their finances at least some of the time, with 10 per cent always feeling anxious about money. In Canada, 69 per cent of workers report feeling worried or anxious about their financial situation at least sometimes, and 35 per cent say they feel anxious always or often.

Benefits Understanding Gap

The report highlights a significant gap in workers' understanding of their retirement benefits. In Canada, 60 per cent of workers do not fully understand the retirement or savings plan they pay into each month. The situation is similar in the UK, where 62 per cent of workers contributing to a workplace retirement or savings program say they do not have a strong understanding of how it works.

This lack of understanding may be driving demand for employer support. In Canada, 63 per cent of employees want more employer-provided resources, communications, or support for retirement, pensions, or savings plans, making it the most requested category of financial support. In the UK, 59 per cent of workers express a desire for employer-provided resources or support for retirement, pensions, or savings.

Demographic Disparities and Caregiver Burden

The index reveals that the impact of financial stress is not evenly distributed across the workforce. Workers under age 40 are three and a half times more likely than those over 50 to report that financial stress negatively affects their work productivity, a finding consistent in both Canada and the UK. Working parents and managers also feel the strain more acutely: in Canada, parents are 80 per cent more likely to report productivity losses due to financial strain compared to their counterparts, while in the UK, managers and parents are 70 per cent more likely to report a negative productivity impact.

Caregivers face a particularly heavy burden. In Canada, 27 per cent of the workforce provides financial support or caregiving to adult children (15 per cent) or aging parents (12 per cent). Among these caregivers, 37 per cent report a negative impact on their finances, 32 per cent on their mental health, and 15 per cent on work productivity. In the UK, a quarter of workers provide care or financial support to adult children, aging parents, or other family members, with 34 per cent reporting a negative impact on their finances, 26 per cent on their mental health, and 15 per cent on work productivity.

Lack of emergency savings compounds the problem. In Canada, 28 per cent of employees lack emergency savings to cover basic needs, and workers without such savings are nearly three times more likely to report impaired work productivity. In the UK, 22 per cent of workers lack emergency savings to cover basic needs.

Mental Health and Substance Use

The index also sheds light on mental health disclosure and substance use in the workplace. In Canada, only 49 per cent of workers feel comfortable telling their manager if they have a mental health issue, while 27 per cent would not feel comfortable and 24 per cent are unsure. In the UK, 53 per cent of workers feel comfortable telling their manager if they have a mental health issue, while 27 per cent would not. More than a quarter of UK workers would not report mental health issues to managers.

Regarding substance use, the index reports that in Canada, 24 per cent of workers say substance use negatively impacts their performance. The primary obstacles to seeking treatment include stigma or embarrassment (27 per cent), cost or financial barriers (23 per cent), confidentiality concerns (22 per cent), and fear of having to tell someone at work (21 per cent). In the UK, for workers with substance use issues, stigma or embarrassment (25 per cent), confidentiality concerns (24 per cent), and fear of workplace disclosure (21 per cent) are the leading barriers to seeking help.

Mental Health Risk Levels

The index categorizes workers by mental health risk. In Canada, 33 per cent of workers have a high mental health risk, 45 per cent have a moderate mental health risk, and 22 per cent have a low mental health risk. The report does not provide comparable UK risk-level breakdowns in the available material.

Methodology

The TELUS Mental Health Index data for Canada was collected through an online survey conducted between June 5 and June 18, 2026, among 3,000 employed adults. The UK data was collected through an online survey during the same period (June 5-18, 2026) among 2,000 people living in the United Kingdom who are currently employed or were employed within the preceding six months.

Paula Allen, Global Leader of Research and Insights at TELUS Health, was quoted in the reports accompanying the index release, though specific commentary was not included in the available material.