Facing high stress levels amidst global
economic uncertainty, employees are seeking financial
guidance
TSX/NYSE/PSE: MFC SEHK:
945
TORONTO, Oct. 28, 2020 /CNW/ - Manulife Investment
Management today announced the results of its Financial Stress
Survey of Canadians, revealing the weight financial stress is
having on workers and its impact on employers. The survey shows
financial stress has increased this year and the pressure and
uncertainty of the COVID-19 crisis has compelled people like never
before to seek guidance on financial planning. The 2020 survey
includes respondents in both Canada and the
United States and captures similar sentiment across the two
countries.
"Given the upheaval experienced in 2020 to-date, it's no
surprise that retirement savers are more stressed today than they
were pre-COVID," said Sue Reibel,
Global Head of Retirement, Manulife Investment Management. "The
silver lining in this year's data is that people are more open to
financial advice than in years past. In this environment, when
faced with managing multiple pressures, stress is high and
responsibilities are piling up, and retirement investors are
looking for a trusted source of advice when it comes to navigating
their finances."
The pandemic's impact on financial stress is evident and
significant. In fact, the number of individuals reporting high
levels of financial stress more than doubled from 11%
pre-COVID to 27% since the crisis struck. Based on today's
realities, including roughly 51% of Canadians dipping into their
emergency savings or increasing credit card balances since the
beginning of the pandemic, only one-third of survey respondents
feel their situations will improve in the coming year. Further,
while only 44% of respondents reported experiencing financial
stress prior to the pandemic, the number grew to 67% following the
outbreak.
Simultaneously, the survey results reveal an increased interest
in receiving advice from professionals both on retirement saving
and investing. In Canada, more
than half of the respondents indicated they were interested in
retirement planning and investing advice. Nearly three-quarters of
U.S. respondents reported that they would seek advice on retirement
planning, up from two-thirds of respondents in 2019. When it comes
to investment advice, 63% responded they would seek it out in 2020
versus 50% in 2019.
"This year has challenged employers and employees alike to do
business and work in novel ways," added Brett Marchand, Head of Canada Retirement,
Manulife Investment Management. "Employers are in a unique position
to support their employees, including alleviating financial stress
and offering advice and guidance, which employers can provide
through a holistic financial wellness offering."
Opportunity for Employers
With survey respondents
reporting increased interest in advice and 75% claiming that an
employer-sponsored financial wellness program would positively
impact their financial stress, the data suggests employers can have
a direct impact on the financial wellness of their teams beyond
salary. Overall, 80% of respondents report that simply setting
financial goals would be helpful.
Ninety per cent of respondents feel it is important for
employers to offer financial wellness programs, including roughly
four in ten who find them highly important. Thirty per cent of
Canadian respondents claim their employers offer a fairly or very
extensive financial wellness program and just 12% of U.S.
respondents report the same experience. Nearly one in five Canadian
respondents to say they are unsure of whether or not their employer
offers a program at all.
Additional noteworthy data from the 2020 Financial Stress Survey
include:
- Personal finances and economy: Three-in-ten Canadian
respondents say their overall current financial situation is fair
or poor. More than a third (35%) of U.S. respondents agree. When it
comes to financial concerns, workers rate the state of the current
economy as the top concern, followed by not having enough
retirement savings. One in four of all respondents say they worry a
great a deal about losing their job – an increase for U.S.
respondents from 2019, which could be due to the impact of the
COVID-19 pandemic on the economy.
- Employees are more focused on their progress. Despite
consumers' increased worries about their current and future
financial positions, they are more in tune with their financial
needs than ever before. More than two-thirds of respondents visit
their retirement plans at least once a quarter to monitor their
finances, including roughly four in 10 (39%) who visit their plans
once a month.
- Employees are looking for personalized retirement
projections: Eighty-nine per cent of Canadian respondents
and 95% of U.S. respondents said that projections of estimated
income and expenses in retirement, including healthcare expenses,
would motivate them to prepare for retirement.
To see the 2020 Financial Stress Survey white paper or learn
more about Canada Retirement, please click here.
Methodology
John
Hancock and Manulife Investment Management are not
affiliated with Greenwald & Associates and are not responsible
for the liabilities of the other.
The 2020 Financial Stress survey was commissioned by Manulife
Investment Management and John Hancock Retirement and conducted by
Greenwald & Associates. An online survey of 589 John Hancock
Retirement plan participants and 1,026 Manulife plan members in
Canada was conducted in
August 2020.
About Manulife Investment Management
Manulife Investment Management is 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 17 countries and territories. 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 June 30, 2020, Manulife
Investment Management had CAD$900
billion (US$660 billion) in
assets under management and administration. Not all offerings
are available in all jurisdictions. For additional information,
please visit manulifeim.com.
SOURCE Manulife Investment Management