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Facing high stress levels consumers are seeking financial
guidance amidst global economic uncertainty
BOSTON, Oct. 28, 2020 /PRNewswire/ - John Hancock
Retirement, a company of Manulife Investment Management, today
announced the results of its seventh annual financial stress survey
of retirement plan participants, revealing the weight of financial
stress on workers and its impact on employers. The survey shows
that while financial stress has increased overall this past year,
the pressure and uncertainty of the COVID-19 crisis has caused
workers to prioritize financial wellness and seek guidance for both
short and long-term financial planning. The 2020 financial stress
survey was expanded to include respondents in both the United States and Canada 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. Further, while only 44% of
participants reported experiencing financial stress prior to the
pandemic, the number grew to 67% following the outbreak. Based on
today's realities, including roughly 28% dipping into their
emergency savings and 19% increasing credit card balances since the
beginning of the pandemic, only one-third of survey participants
feel their situations will improve in the coming year.
Simultaneously, the survey results reveal an increased interest
in receiving advice from professionals both on retirement saving
and investing, particularly among U.S. respondents compared with
prior years. Nearly three-quarters of U.S. participants 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 that they would seek it out in 2020 versus
50% in 2019. In Canada, more than
half of the respondents indicated they were interested in
retirement planning and investing advice, at 58% and 51%
respectively.
"This year has delivered many challenges and both employers and
employees have been asked to reimagine how they work," added
Lynda Abend, chief data officer,
John Hancock Retirement. "Employers are uniquely
positioned to provide relief in many forms, including alleviating
financial stress for their employees by revisiting the benefits
playbook. Employees are looking for advice and guidance, which
employers can provide through a holistic financial wellness
offering."
Opportunity for employers
With survey participants
reporting increased interest in advice and 75% claiming that an
employer-sponsored financial wellness program would positively
affect 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 at least moderately helpful.
Ninety percent of respondents feel it's important for employers
to offer financial wellness programs, including roughly four in ten
who find them highly important. Thirty percent 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. U.S. workers are also more than twice as
likely as Canadian respondents to say they are unsure of whether or
not their employer offers a program at all (39% and 18%,
respectively).
Additional noteworthy data from the 2020 Financial Stress Survey
include:
- Personal finances and economy: More than a third (35%)
of U.S. respondents say their overall current financial situation
is fair or poor. Three-in-ten Canadian 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 - likely due to the impact of the COVID-19
pandemic on the economy.
- Employees are tuning in to their progress: Despite
consumers' increased worries about their current and future
financial positions, they are more tapped into their financial
needs than ever before. More than two-thirds of participants visit
their retirement plans at least once a quarter to monitor their
finances, including roughly four in ten or 39% who visit their
plans once a month.
- Employees are looking for personalized retirement
projections: Ninety-five percent of U.S.
participants and 89% of Canadian participants 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 John Hancock Retirement, please click
here.
Methodology
John Hancock Retirement 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 plan members in Canada was conducted in August 2020.
About John Hancock Retirement
John Hancock Retirement
is the U.S. retirement business of Manulife Investment Management.
For nearly 50 years, we've helped people plan and invest for
retirement; today, we're one of the largest full-service providers
in the United States.¹ We take a hands-on consultative approach
based on the idea that no two plans - and no two plan participants
- are exactly alike. We partner with plan sponsors, financial
professionals, and third-party administrators to ensure that every
plan is personal to the participant and helps deliver results.
As of June 30, 2020, John Hancock serviced over 51,000 retirement
plans with over 3 million participants and over $177 billion in AUMA. 2
1. "2020 Defined
Contribution Recordkeeper Survey," PLANSPONSOR, 2020.
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2. As of June 30,
2020, John Hancock Life Insurance Company (USA) supported 46,942
plans, 1,590,762 participants, and $88,315,505,455 in AUMA. John
Hancock Life Insurance Company of New York supported 2,511 plans,
78,978 participants, and $5,286,691,809 in AUMA. John Hancock
Retirement Plan Services, LLC supported 2,009 plans, 1,348,513
participants, and $83,944,095,426 in AUMA. Participant Counts
reflect all active participants with a balance. Approximate
unaudited figures for John Hancock, provided on a U.S. statutory
basis.
|
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.
John Hancock Distributors LLC Member FINRA, SIPC 200 Berkeley
Street Boston, MA 02116
800-225-6020, jhinvestments.com.
John Hancock Retirement Plan Services, LLC• 200 Berkeley Street •
Boston, MA 02116
NOT FDIC INSURED. MAY LOSE VALUE. NOT BANK GUARANTEED.
© 2020 John Hancock. All rights reserved.
MGR1026201384429
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SOURCE John Hancock Retirement