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Gen Z Leads All Age Groups for Mental Health Challenges and Chronic Disease Rates

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Chronic disease drug claims are growing 2-3 times faster for Gen ZGen Z antidepressant claims grew at double the rate of overall plan members across a three-year spanMental health disorders account for over 60 per cent

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AI Summary

Sun Life's report highlights Gen Z's increasing mental health challenges, with chronic disease claims rising significantly. This evolving workforce demographic will impact business environments as mental health claims escalate, necessitating tailored health solutions to maintain workplace resilience.

Sentiment Rationale

The growing mental health crisis among a major workforce demographic can lead to increased insurance product demand, enhancing SLF's growth prospects, as seen historically when similar trends drove revenues up for mental health-focused insurance providers.

Trading Thesis

Consider buying SLF as demand for mental health solutions increases, boosting revenue in the next 6-12 months.

Market-Moving

  • Rising mental health issues among Gen Z may increase demand for Sun Life's services.
  • Growth in chronic disease claims suggests long-term revenue potential for SLF.
  • Higher disability claims can pressure insurance premiums and affect SLF profitability.
  • Increasing focus on mental health solutions can differentiate Sun Life in the market.

Key Facts

  • Gen Z experiencing rapid growth in chronic disease claims.
  • Antidepressant claims doubled faster than overall plan member growth.
  • Over 60% of Gen Z women's disability claims are mental health-related.
  • Chronic conditions like diabetes growing significantly among younger employees.
  • Supporting Gen Z vital for resilient businesses amid health challenges.

Companies Mentioned

  • Sun Life Financial Inc. (SLF): The report indicates a growing need for mental health solutions, potentially driving revenue.
  • Dialogue (Dialogue): Partnering with Sun Life in virtual health solutions may enhance employee engagement.

Industry News

This report fits under 'Industry News' as it signals a significant shift in healthcare demand driven by demographic changes. Understanding these trends is crucial for investors focusing on the health insurance and financial services sectors.

  • Chronic disease drug claims are growing 2-3 times faster for Gen Z
  • Gen Z antidepressant claims grew at double the rate of overall plan members across a three-year span
  • Mental health disorders account for over 60 per cent of long-term disability claims for Gen Z women

Sun Life logo (CNW Group/Sun Life Financial Inc.)

TORONTO, Jan. 21, 2026 /CNW/ - According to a new report from Sun Life, Gen Z are facing greater mental health difficulties and increasing rates of chronic disease compared to other age groups. As the generation set to dominate Canada's workforce by 2030, their health challenges ripple through every workplace and community. Sun Life's newest report focused on Gen Z (those born between 1997 and 2012) draws on data from over 20,000 employers and 3 million plan members, providing critical insights shaping the future of Canadians' well-being.

Key findings from the report:

  • Over 50 per cent of Gen Z's long-term disability claims are for mental health disorders, compared to approximately 40 per cent for the overall population.
  • Gen Z antidepressant drug claims grew two times faster than all plan members from 2021-2024.
  • Gen Z men's use of antidepressants increased over 50 per cent from 2021-2024, growing much faster than overall members and outpacing growth among Gen Z women.
  • For Gen Z women specifically, mental health disorders account for over 60 per cent of their long-term disability claims, and they use mental health therapy twice as much as men.
  • Despite the above, more Gen Z men are seeking help than ever before. The growth in Gen Z men's visits to psychologists outpaced Gen Z women, and grew almost twice as fast as overall members.
  • Growth in claims for drugs to treat asthma/chronic obstructive pulmonary disorder, diabetes, high blood pressure and high cholesterol are two to three times higher among Gen Z employees than other age cohorts.

"Supporting Gen Z is essential for building resilient businesses and a stronger future for Canadians," said Marie-Chantal Côté, Senior Vice-President, Sun Life Health. "This generation is coming of age in a world shaped by economic uncertainty, climate anxiety and digital overload and it's clear that they need more than just a paycheque."  

Chronic conditions on the rise

Factors such as climbing obesity rates, sedentary lifestyles and unhealthy diets are impacting the physical health of young Canadians. While the incidence of chronic disease among Gen Z employees is still much lower than that of older employee cohorts, Sun Life data highlights that the prevalence of chronic disease among young Canadians is rising, and by the time today's Gen Z employees reach middle age, chronic disease incidence could be significantly greater than today for those aged 40 to 59. The growth rates in chronic disease drug claims reveal a concerning trend:

  • Claims for diabetes drugs grew 2-4 times faster among those under the age of 30 compared to those between the ages of 30 and 60 years old.
  • Diabetes drug claims for Gen Z women are growing 40 per cent faster than men's.

Supporting and building resilience

Supporting Gen Z employees to manage their mental and physical health challenges is part of Sun Life's Purpose to help Canadians live healthier lives. Creating resilience, especially in the workforce, where much time is spent, starts with empowering employees to understand the supports available to them through their group benefits plans. Through options like Lumino Health Virtual Care, provided by Dialogue or flexible personal and health spending accounts, Sun Life delivers targeted health solutions designed to meet Gen Z where they are on their health journey.

"Canadians deserve health solutions that fit their real lives," said Côté. "We're giving them practical tools to support every stage of life, because nothing matters more than protecting your health."

To learn more about the emerging trends in Gen Z health and their impact on Canadian workplaces, read the full report here.  

About Sun Life

Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the U.S., the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of September 30, 2025, Sun Life had total assets under management of $1.62 trillion. For more information, please visit www.sunlife.com.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.

Note to editors: All figures in Canadian dollars

To contact Sun Life media relations, please email Media.Relations@sunlife.com

SOURCE Sun Life Financial Inc.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/January2026/21/c0265.html

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