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- Pandemic-era savings have boosted employees' confidence in
their financial situations and expectations for the future, even
while a rising number—nearly 75%—report feeling stressed in the
past year.
- Employees are eager for financial guidance and solutions from
their employer.
- 66% said that having access to financial wellness programs
would make them more likely to stay with their employer.
BOSTON, Jan. 11, 2022 /PRNewswire/ - John Hancock
Retirement, a company of Manulife Investment Management, today
announced the results of its Stress, Finances, and Well-Being
report, the eighth annual survey of its retirement plan
participants. As the effects of the pandemic have altered the
American workforce in ways that continue to play out, this report
is a snapshot of employees' feelings about their finances and
well-being as they continue to manage the impact of a lingering
pandemic.
This year's report showed participants' confidence in their
personal financial situation is at its highest level since 2018;
however, they also responded that they're seeking help in making
money management decisions and showing a desire for guidance and
solutions as pandemic fatigue has evolved into decision-making
fatigue. This represents a chance for employers, financial
professionals, and retirement providers to help retirement savers
build a solid foundation for the future.
The value in employer-sponsored retirement plans is broadly
acknowledged, with almost all respondents stating that it's a
critical benefit, including 72% who said it's very critical. What's
more, 80% of respondents said they wouldn't be likely to work for a
company that doesn't offer a retirement plan.
"Uncertain economic times often cause people to adopt positive
financial behaviors in the short term. This fact, combined with the
unique situation of COVID-19 greatly reducing the opportunities to
spend money, found many retirement savers in a stronger financial
situation than they were prepandemic," said Sue Reibel, CEO,
John Hancock Retirement. "There's a clear opportunity for employers
to keep this momentum going by offering support to employees to
help them make investment decisions with confidence, ultimately
reducing their financial stress."
In alignment with participants' confidence in their personal
financial situations, the survey found reduced levels of worry
compared with last year's report. This may be correlated to
pandemic-related savings—lower commuting, entertainment, leisure,
and travel expenses—which has allowed respondents to put that money
to work in other areas of their financial lives. However, the 2021
report found that three in four respondents exhibit financial
stress at least at a moderate level. Financial stress continues to
be prevalent at work as well, with 66% saying they worry about
personal finances while on the clock, with nearly half responding
that they worry about it on a weekly basis.
"The takeaway of this year's report is the paradox that we have
actually seen improved savings and confidence in personal financial
situations in an ongoing pandemic. However, the positive behaviors
resulting in this trend have not been fully adopted by
participants," said Lynda Abend,
head of strategy and transformation, John Hancock Retirement.
"This environment presents a unique opportunity to help people
bridge their short-term improvements into actions that will bring
them sustainable, long-term financial health."
Openness to assistance is an opportunity to help
The opportunity for employers to help their workforce secure
their financial future is a potential mitigating factor for the
Great Resignation and a means to improve recruitment and retention
strategies. Further, the report found that 89% said it's important
for employers to offer financial wellness programs, and 66% said
that having access to financial wellness programs would make them
more likely to stay with their employer.
Beyond those benefits, the report found that roughly two-thirds
of respondents expressed at least moderate interest in receiving
recommendations on Social Security strategies and retirement income
forecasts from their employers. And 93% said receiving projections
on their estimated retirement income and expenses would help them
save more.
With only 37% of respondents saying they have a comprehensive
financial plan for retirement, the potential impact of offering
financial guidance and wellness programs is clear.
Additional key findings from the report
- 71% of participants have experienced stress, depression, or
loneliness during the past year.
- A majority agree that financial concerns add stress to their
life; more than 40% reported having had stress often/all of the
time during the last year.
- The report found that retirement planning (cited by 47%),
paying off debt (43%), and ensuring savings are invested wisely
(37%) were the top priorities for participants in the coming
months.
- Approximately half of the respondents feel they'll retire
around the time they planned; 20% are unsure when they'll be able
to retire.
- When it comes to retirement expenses, employees are most
worried about healthcare cost, with 68% indicating that it's at
least somewhat concerning.
The full survey as well as more information about John Hancock
Retirement are available online.
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
delivers results.1
As of 9/30/21, John Hancock serviced over 52,000 retirement
plans with over 3.1 million participants and over $220 billion in AUMA.2 Participant
counts reflect all active participants with a balance.
1 "2021 Defined Contribution Recordkeeper Survey,"
PLANSPONSOR, 2021. 2 As of 9/30/21, John Hancock
Life Insurance Company (U.S.A.)
supported 48,549 plans, 1,605,083 participants, and $108,074,132,509 in assets under management and
administration (AUMA). John Hancock Life Insurance Company of
New York supported 2,568 plans,
77,020 participants, and $6,133,181,973in AUMA. John Hancock Retirement
Plan Services LLC supported 1,562 plans, 1,503,715 participants,
and $106,615,194,820 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 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 9/30/21, Manulife Investment Management's AUMA, 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.
Methodology
In August 2021, John Hancock
commissioned our eighth annual financial stress survey with the
respected research firm Greenwald Research. An online survey of
1,162 workers was conducted between 8/4/21
and 9/3/21 to learn more about individual stress levels,
their causes and effects, and strategies for relief.
This information is general in nature and is not intended to
constitute legal or investment advice. This report presents the
results of research conducted by Greenwald & Associates on
behalf of John Hancock. Greenwald Research and John Hancock are not
affiliated, and neither is responsible for the liabilities of the
other.
The objectives of this study were to (i) quantify the financial
situation and level of financial stress of John Hancock plan
participants and plan participants outside of John Hancock; (ii)
determine the key triggers of financial stress; (iii) understand
the extent to which actions, including actual financial behavior
and planning activity, ameliorate stress; and (iv) assess
retirement preparation and readiness. It was an online survey with
an average length of approximately 19 minutes per respondent. All
statistical testing is done at 0.95 and 0.99 significance levels.
The maximum margin of sampling error at the 95% confidence level is
±4.1%. Percentages in the tables and charts may not total to 100
due to rounding and/or missing categories.
John Hancock Retirement Plan Services LLC provides
administrative and/or recordkeeping services to sponsors or
administrators of retirement plans through an open-architecture
platform. John Hancock Trust Company LLC provides trust and
custodial services to such plans.
Group annuity contracts and recordkeeping agreements are issued
by John Hancock Life Insurance Company (U.S.A.), Boston,
MA (not licensed in New
York), and John Hancock Life Insurance Company of
New York, Valhalla, New York. Product features and
availability may differ by state. All entities do business under
certain instances using the John Hancock brand name.
Each entity makes available a platform of investment
alternatives to sponsors or administrators of retirement plans
without regard to the individualized needs of any plan. Unless
otherwise specifically stated in writing, each such company does
not, and is not undertaking to, provide impartial investment advice
or give advice in a fiduciary capacity. Securities are offered
through John Hancock Distributors LLC, member FINRA, SIPC.
NOT FDIC INSURED. MAY LOSE VALUE. NOT BANK GUARANTEED.
© 2022 John Hancock. All rights reserved.
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SOURCE John Hancock Retirement