How the US tariff chaos impacts your members

Capital Accumulation Plan Income Tracker (CAPit) – April 2025

U.S. tariffs are expected to significantly impact household expenses in Canada by increasing the cost of imported goods. This inflationary pressure will make it harder for many Canadians to afford the necessities. It will also likely have a significant impact on retirement savings. For those nearing retirement, economic uncertainty, market volatility, and the potential for higher inflation have created significant anxiety, prompting some to reconsider when they will exit the workforce.

Against this backdrop, financial wellness support for employees is becoming increasingly important. One of the most effective ways to reduce anxiety and help Canadians stay on track with their financial and retirement goals is by encouraging employees to have a financial plan. As noted in the recent FP Canada Financial Stress Index 2025, common obstacles to financial wellness include not having a budget, not knowing where to start with financial planning, and limited access to financial tools and resources. Providing your employees with financial planning tools can help alleviate the stress of the current situation by showing them where their money is currently being spent, and where they can make adjustments. Planning tools can also give them the confidence to remain focused on their long-term goals.

Employee education also plays a critical role. Educating employees about the “basics” of budgeting and debt management or hosting targeted sessions on topics such as the impact of tariffs and how to manage money during difficult times can give employees the confidence and direction to make more informed decisions about their money and future plans. For those close to retirement, meeting with a financial planner one-to-one can provide personalized guidance that offers the reassurance needed to move forward with their strategy or make the necessary adjustments to reach their goals.

Managing money is hard. It can seem almost impossible during challenging economic times. As a trusted source of information, employees are much more likely to embrace and utilize the resources you provide. Employee education and access to personalized support, coupled with financial planning tools, can give your employees the knowledge and confidence they need to achieve financial wellness so they can remain engaged and productive at work.