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Most (87%) believe we will soon enter a
recession or are already in one, and majority (56%) think it will
last at least a year
- Nearly two-thirds (62%) say they don't feel prepared
financially for a recession
- Almost all Canadians surveyed admit they are worried about
interest rates (85%) and inflation (94%)
TORONTO, Nov. 23,
2022 /CNW/ - Over the past several months there has
been increased discussion regarding the possibility of the Canadian
economy entering a recession. In October
2022, Manulife Bank took the pulse of Canadians, as part of
its bi-annual Debt Survey to find out how they are feeling about
the state of the economy and if they are preparing to weather the
storm.
"As the economic landscape is looking rocky, a large
majority of Canadians are getting worried and that's particularly
telling when reviewing this season's Manulife Bank's Debt Survey
results," said Lysa Fitzgerald, Vice
President of Sales, Manulife Bank.
For the Canadians who think the economy is about to enter a
recession or is already in one, we asked how they are or will be
adjusting their finances in response to the recession and found
that as many as twelve percent (12%) state they plan on doing
nothing at all.
For those who are adjusting their finances to the new
environment, here's the top five most popular responses:
- Spending less on leisure or entertainment (53%)
- Grocery shopping on a budget (52%)
- Avoiding making large purchases or doing home renovations
(49%)
- Driving car less to save money on gas (38%)
- Delaying or cancelling traveling plans (33%)
Only 8% of Canadians state they're adjusting their financial
plan, and only 5% are adjusting their debt re-payment plan.
According to Ms. Fitzgerald there are options that Canadians can
take to help lessen their debt load.
"For those with debt, who might be experiencing
increasingly higher interest rates, now may be the time to focus on
consolidating debt to a lower interest secured line of credit like
Manulife One and making repayments from lower interest savings
accounts", adds Ms. Fitzgerald. "They will save more in interest on
the lower debt than they would on their savings while potentially
increasing their available credit should unforeseen expenses arise.
It's always important to regularly take a detailed look at your
personal financial plans, especially in this case, to adjust to
difficult economic periods."
About the Manulife Bank of Canada
Debt Survey
Now in its twelfth year, the Manulife Bank of Canada poll surveyed 2,002 Canadians in all
provinces between ages 20 and 69 with household income of more than
$40,000. The survey was conducted
online by Ipsos between October 7 and 12,
2022. National results were weighted by gender, age, region,
and education. This survey has a credibility interval of +/- 2.5
per cent 19 times out of 20, of what
the results would have been had all Canadian adults between the
ages of 20 and 69 been surveyed.
About Manulife Bank
Manulife Bank is one of Canada's original digital banks. Since our
launch in 1993, we've been designing efficient, flexible products
that fit seamlessly into our customers' lives to help make their
decisions easier and lives better. Today, Manulife Bank has over
$27 billion in assets and serves
clients across Canada in all
provinces and territories.
About Manulife One
Manulife One is an all-in-one mortgage, line of credit and bank
account that helps you take control of your debt. With the
flexibility to adjust on the got to meet your changing needs, it's
no wonder it is known as Canada's
most flexible mortgage.
With Manulife One, you can:
- Easily increase or decrease mortgage payments to meet your
changing needs
- Access your home equity when you need it, for whatever you
need
- Consolidate debt to reduce your interest costs and become
debt-free sooner
To learn more visit ManulifeBank.ca
About Manulife
Manulife Financial Corporation is a leading international
financial services provider, helping 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 2021, we had more than 38,000 employees,
over 119,000 agents, and thousands of distribution partners,
serving over 33 million customers. 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 Financial Corporation