Gen Z mental health now drives more than half of their disability claims: Sun Life

Gen Z disability and drug claims are rising faster than any other cohort in Sun Life’s book of business, and that shift is starting to reshape plan risk. 

Sun Life’s new report finds that Gen Z already represents almost 20 percent of working‑age Canadians and, together with millennials, will make up most of the workforce by 2030. Their claims patterns differ sharply from older groups. 

Mental health now dominates Gen Z disability 

Sun Life reports that more than half of Gen Z long‑term disability claims are for mental disorders, compared with about 40 percent across all plan members.  

For Gen Z women, mental disorders drive more than 60 percent of long‑term disability claims. 

Therapy and drug data tell a similar story.  

Overall, Gen Z submits psychologist claims at roughly the same rate as the total member base, but within the cohort women claim about twice as often as men.  

At the same time, growth in psychologist claims is fastest among Gen Z men, rising at close to twice the rate seen across all plan members between 2021 and 2024. 

Antidepressant use is also climbing.  

Sun Life says Gen Z antidepressant claims grew about two times faster than those of all plan members from 2021 to 2024, with slightly stronger growth among men than women.  

A separate summary of the report notes that Gen Z men’s antidepressant use increased by more than 50 percent over that period, outpacing both the broader membership and Gen Z women. 

External research cited in the paper suggests that women and men have similar overall rates of mental disorders, but women more often internalize distress and seek treatment, while men more often externalize distress and delay care.  

Against that backdrop, the acceleration in Gen Z men’s claims signals a shift that has direct implications for disability and extended health experience. 

Chronic disease claims growing off a low base 

Chronic disease drug claims remain lower among Gen Z than among older cohorts, which reflects typical age patterns.  

The concern is growth.  

Sun Life finds that claims for drugs to treat asthma or chronic obstructive pulmonary disease, diabetes, high blood pressure and high cholesterol are rising two to three times faster among Gen Z than among other age groups. 

In diabetes specifically, the insurer reports that drug claims among those under 30 grew 2–4 times faster than among those aged 30 to 60.  

Within Gen Z, women’s diabetes drug claims are growing about 40 percent faster than men’s, and women claim more than men across all four chronic disease categories. 

The paper links these trends to higher obesity, more sedentary behaviour and poor diet in younger adults.  

Sun Life points to public health data showing obesity rising quickest among 18‑ to 39‑year‑olds and notes research that a higher body mass index raises diabetes risk more in women than in men, with higher complication rates for women once diabetes develops.  

The report warns that if current patterns continue, chronic disease incidence in Gen Z at mid‑life could exceed what is seen today among Canadians aged 40 to 59. 

Environment and money pressures feed into claims 

Sun Life argues that Gen Z’s health outcomes reflect the environment they grew up in.  

The report highlights four pressure points that matter for workplaces: 

• Digital and social media use, with 47 percent of Gen Z respondents in a cited study saying social media harms their mental health. 

• COVID‑19 disruptions to school, work entry and social development. 

• Climate anxiety and extreme weather, with Sun Life and Environics Research finding almost half of Gen Z employees report climate anxiety and Gen Z reporting the highest physical and mental health impacts from climate‑related events. Of those with climate‑related mental health impacts, 75 percent say it has hurt their work performance. 

• Financial strain from high rents, living costs, student debt and precarious work, with over half reporting anxiety, depression and other mental health challenges tied to money. 

The report also notes that Gen Z has grown up with greater openness about mental health, which likely contributes to higher use of psychological services and medications. 

Takeaways for benefit and pension decision‑makers 

For sponsors, the Sun Life data point to three practical issues: 

• Disability and extended health experience will increasingly reflect mental disorders, especially among younger women, with fast‑rising utilization among young men. 

• Chronic disease risk is moving earlier in the life course, particularly for diabetes in young women, with growth rates that could translate into heavier costs at mid‑career. 

• Climate, digital and financial stressors are now part of the health backdrop, with self‑reported impacts on productivity. 

The paper positions group benefits as a main channel for support and points to digital‑first mental health services, Employee Assistance Programs, disease‑management support for diabetes and respiratory conditions, and flexible health or personal spending accounts as tools sponsors can use. 

Wellness programs that focus on activity, sleep, social connection and other resilience‑building habits also feature as levers. 

Sun Life’s Bright Paper, The kids are all grown up – Checking in on Generation Z, profiles Canadians born between 1997 and 2012 using data from more than 20,000 employers and 3 million plan members.