In the post-pandemic economic climate, Canadians are facing new financial challenges as they adapt to environmental changes. Healthcare can be a significant expense for many households. Employee benefits packages can mitigate this stress and help companies attain and retain talent long term.
Taking care of employees means creating a benefits plan that is flexible to their personal needs. One of the most significant advantages of a health spending account is that it allows pre-tax dollars to be used to pay for eligible health-related expenses. Regardless of your tax bracket, you can save a lot of money by paying for health care through your health spending account with pre-tax dollars.
A recent article by Bloomberg describes the current state of Canadians personal finances while coping with post-pandemic struggles. Ipsos surveyed 2000 Canadians in March and found that 31% of respondents don’t earn enough to cover their bills. Many Canadians are feeling the effects of the Bank of Canada’s increased policy rate, which has been bumped for the first time since 2018. With so many people having to tighten the belts on their personal spending budgets this year, looming health expenses are the last thing they need.
One of the explanations for the recent circumstances is that many households are coming off COVID-19 aid programs which have significantly supplemented their financial situations over the last two years. Now that things are retuning back to a sense of normalcy, Canadians are feeling the pressure of hiked bills and unpredictable income. Homeowners are voicing their intention to be extra cautious in the coming year which means that any support employers can provide to cushion costs post-pandemic will be highly valued.
Conclusion
As grace periods and low interest rates come to an end, employee benefits packages are one of the redeeming support structures available to Canadians post-pandemic. By reducing employee burnout, increasing talent retention, and fostering a positive culture in the workplace, employee benefits become employer benefits.
We believe healthcare is stressful enough. Paying for it shouldn’t be. Curious how The HSA Group’s HSA and WSA health and wellness solutions can save you up to $1,500 per year? Contact us today.
