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Manulife Canada Retirement Study: Stress,
Finances, Well-Being, commissioned by Manulife Investment
Management
TORONTO, Jan. 25, 2022 /CNW/ - Manulife Investment
Management today announced the results of its second Canada
Retirement Study: Stress, Finances, Well-Being of Canadians.
The survey provides a timely snapshot of how plan members are
feeling about their well-being, overall financial security and
retirement preparedness. It reveals most Canadians want to be
more confident in their financial decisions, and who are interested
in receiving help from their employers.
"Canadians are feeling the impacts of the pandemic, which
include financial stress for so many. The study's findings
underscore the importance for individuals to seek, and workplaces
to provide, continued financial guidance," said Brett Marchand, Head of Retirement, Manulife
Investment Management, Canada.
"Advisors and workplaces have an opportunity to help reduce
Canadians' financial stress by offering support that will help
increase their knowledge of investment opportunities and confidence
when making financial decisions."
The study found six core stresses affecting Canadian workers
and future financial plans:
- Financial positions have improved, but stress has
worsened: Seven in ten people surveyed rate their
financial position as good or better than it was pre-pandemic, but
more than twice as many workers surveyed report major stress during
the pandemic compared to before, with 30 per cent feeling extreme
stress in the past six months.
- Mental health continues to be impacted throughout the
pandemic: COVID-19 has had a negative impact on workers
mental health, with 36 per cent reporting personal finance as their
main source of stress as well as workload (34 per cent),
relationships (31 per cent) and work-life balance (30 per cent).
And, plan members are split on what comes next, 40 per cent feel
optimistic that things will get better in the year ahead, whereas
another 40 expect things to stay the same for a while.
- Financial stress is prevalent both at home and at work:
Workers spend an average of 5.8 hours per week on personal finances
at work, and 60 per cent say they worry about personal finances at
work at least once a week. Of those who worry about personal
finances, almost seven in ten believe they would be at least
somewhat more productive if they did not spend time worrying at
work. In addition, three-quarters state a financial wellness
program would have/has at least some impact on reducing financial
stress, recommending someone to their company, or likelihood to
stay at current job.
- Retirement plan participants are taking better care of their
finances, with three common goals: The study found that
more people are taking better care of their finances by checking
credit reports and scores. Three in five report they will retire
about when they originally planned to or earlier. And, those with a
financial wellness plan offered by their employer (11% vs 4%) are
more likely to say that they plan on retiring earlier than
planned.
- Workers are concerned about basic needs (health care and
daily expenses) in retirement, but are unsure whether they're
ready: Just under half of the respondents have a
comprehensive financial plan for retirement, and seven in ten are
at least moderately interested in receiving recommendations on
Canada Pension Plan strategies from their employers.
- Gender plays an important role on sentiment when it comes to
financial positioning: Males and workers with financial
wellness plans are more likely to cite their current financial
situation as very good/excellent. Compared to females (36 per cent
vs 46 per cent males) who are less comfortable with the amount of
debt they are carrying and are more concerned about basic expenses
like food, transportation and taxes in retirement (29 per cent vs
22 per cent).
How can employers help?
The takeaway of this year's study is the interplay of trends
that raised workers awareness about the precarious nature of their
finances. Almost half of workers would like to be more confident
about making financial decisions, creating an opportunity for
employers to review programs that better support employee and
organizational wellbeing. Employers can incentivize workers by
providing flexibility and expanding financial wellbeing supports
and offerings.
Expansion of financial supports and wellness
offerings:
- The value in employer-sponsored retirement plans is broadly
acknowledged with 84 per cent seeing it as a critical company
benefit. In fact, six in ten say they would not be likely to work
for a company that doesn't offer a retirement plan.
- Three-quarters state a financial wellness program would
have/has at least some impact on reducing financial stress, has a
positive impact on their productivity and recommending someone to
their company, or keeping them at their current workplace.
- Almost three in five would be interested in receiving help from
their employer when it comes to opening an emergency savings
account, education savings tools, or managing their budget. Also,
45% feel that a consultation with a financial advisor could have a
major impact on preparing financially for retirement.
"With just under half of respondents saying they have a
comprehensive financial plan for retirement and half expressing a
desire to be more confident about making financial decisions, the
potential impact of offering an expanded financial wellness program
in the workplace is clear," said Marchand.
Methodology
Manulife Investment Management is not affiliated with Greenwald
& Associates and is not responsible for the liabilities of the
other. The 2021 Financial Stress survey was commissioned by
Manulife Investment Management and John Hancock Retirement and
conducted by Greenwald & Associates. The online, bilingual
survey of 1,002 plan members drawn from a panel of everyday
Canadians was conducted from August 25th
through September 4th, 2021.
Click here to view the detailed financial stress survey
whitepaper.
About Manulife Investment Management
Manulife Investment Management is the global brand for the
global wealth and asset management segment of Manulife Financial
Corporation. We draw on more than a century of financial
stewardship and the full resources of our parent company to serve
individuals, institutions, and retirement plan members worldwide.
Headquartered in Toronto, our
leading capabilities in public and private markets are strengthened
by an investment footprint that spans 18 geographies. We complement
these capabilities by providing access to a network of unaffiliated
asset managers from around the world. We're committed to investing
responsibly across our businesses. We develop innovative global
frameworks for sustainable investing, collaboratively engage with
companies in our securities portfolios, and maintain a high
standard of stewardship where we own and operate assets, and we
believe in supporting financial well-being through our workplace
retirement plans. Today, plan sponsors around the world rely on our
retirement plan administration and investment expertise to help
their employees plan for, save for, and live a better
retirement.
As of September 30, 2021, Manulife
Investment Management's assets under management and administration,
including assets managed for Manulife's other segments, totaled CAD
$1.1 trillion (US $835 billion). Not all offerings are available in
all jurisdictions. For additional information, please visit
manulifeim.com.
About Manulife
Manulife Financial Corporation is a
leading international financial services provider that helps people
make their decisions easier and lives better. With our global
headquarters in Toronto, Canada,
we provide financial advice and insurance, operating as Manulife
across Canada, Asia, and Europe, and primarily as John Hancock in the
United States. Through Manulife Investment Management, the
global brand for our global wealth and asset management segment, we
serve individuals, institutions and retirement plan members
worldwide. At the end of 2020, we had more than 37,000 employees,
over 118,000 agents, and thousands of distribution partners,
serving over 30 million customers. As of September 30, 2021, we had CAD$1.4 trillion (US$1.1
trillion) in assets under management and administration, and
in the previous 12 months we made CAD$31.6
billion in payments to our customers.
Our principal operations are in Asia and Canada, and the
United States, where we have served customers for more than
155 years. We trade as 'MFC' on the Toronto, New
York, and the Philippine stock exchanges and under '945' in
Hong Kong. Not all offerings are
available in all jurisdictions. For additional information, please
visit manulife.com
SOURCE Manulife Investment Management