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- Financial progress gained during the pandemic has declined in
the past year with only 1 in 5 Canadian workers describing their
financial situation as strong and 2 in 5 describing it as fair or
poor
- The report found that 1 in 3 employees surveyed think they'll
have to retire later than planned, a significant increase from the
1 in 4 who said they'd need to delay retirement last year
- Sixty-two percent of employees are interested in receiving
financial planning and mental health resources from their
employer
- Seventy-one percent of workers say their mental health has
interfered with their ability to work in the past year
- Employee stress can cost Canadian employers close to
$2,000 a year per
employee1
TORONTO, April 18,
2023 /CNW/ - Today, Manulife announced the results of
its third annual Manulife Retirement survey: Stress, finances, and
well-being, a snapshot of how Canadian workers with an
employer-sponsored retirement plan are feeling about their
well-being, overall financial security, and retirement
preparedness. It reveals the impact of the uncertain economy on
Canadians and potential responses both employees and employers can
consider in response to the macroeconomic environment.
"Just when the pandemic was finally giving way, Canadians were
faced with a barrage of challenging economic concerns. Our survey
shows not only how it negatively impacted their personal finances
and mental health but also offered evidence of what might be done
to counteract the uncertainty," said Aimee
DeCamillo, head of Global Retirement, Manulife Investment
Management.
Financial stress grows
With the Bank of Canada raising
interest rates seven times in 2022, inflation averaging 6.8% in
2022, and the potential for a recession dominating news coverage,
it's not surprising that 70% of respondents say they're worried a
great deal about the economy. Concerns about the impact of
inflation on cost of living (61%), rising interest rates (46%), and
economic conditions in general (42%) were the most frequently cited
issues.
Nearly all respondents have taken note of rising costs in the
past six months, with the vast majority reporting increased
spending on groceries (98%), household basics (89%), gas (86%), and
monthly bill payments (79%).
Canadians are doing their best to manage increasing expenses,
with 77% of respondents making changes to their shopping habits and
purchase plans. More specifically, about 2 in 3 are comparing costs
and nearly half are postponing large purchases. Slightly more than
a quarter of respondents reported cutting back to only buy
essentials.
Personal finances increasingly strained as mental health
decreases
Beyond concerns about economic conditions in general, more than
half of respondents (53%) worry a great deal about one or more
aspects of their personal finances. Most frequently cited are
credit card debt (40%), not having enough emergency savings (30%),
and not having enough retirement savings (29%).
These financial worries are coupled with a noteworthy decline in
workers' financial situations. Employees surveyed are now nearly
twice as likely to describe their personal finances as fair or poor
(40%) than they are to call them very good or excellent (21%). This
year's survey found a 10% increase in the number who considered
their finances fair or poor and an 11% decrease in those who
considered their financial situation to be excellent or very
good.
As household budgets are strained by inflation, 2 in 5
respondents say it's currently challenging for them to save money
and 1 in 5 have dipped into their savings to be able to afford
day-to-day necessities.
The challenging economic backdrop has had an impact on the
mental well-being of 4 in 5 (79%) of respondents, with 24% saying
it's had a major impact.
Increased financial stress and decreased mental health
affects the workplace
Employees' mental health issues are showing up on the job, with
71% of employees surveyed reporting that their mental health has
interfered with their ability to work in the past year. Four in 5
respondents worry about their finances while they're working and
nearly 1 in 3 say they worry often. Half of those who worry say
they'd be more productive at work if they were less worried.
Employee stress can take a toll on companies' bottom lines as
well, with financial stress that can cost employers close to
$2,000 ($1,786) per employee in lost productivity and
absenteeism totaling up to $178,600
for small employers with 10 to 100 employees, up to $891,214 for medium-size businesses with 101 to
499 employees, and more than $893,000
for large employers with 500 employees or more.2
Employer-provided financial wellness programs and
professional advice can make a difference
Employees themselves say that financial wellness programs reduce
their financial stress (79%), make them more likely to stay with
their employer (75%), more likely to recommend that someone
consider working for the company (73%) and make them more
productive (66%); however, only half say their employer offers a
program and one in four (25%) are unsure if they have one.
Although only 1 in 5 Canadian employees surveyed describe their
current financial situation as very good or excellent, those who
have one-on-one support from a financial advisor are significantly
more likely to say they have a very good or excellent financial
situation. Additionally, those with an advisor report having an
easier time saving money (36% vs. 28% without an advisor), more
likely to be on track to retire (47% vs. 34% without an advisor),
and more likely to feel good about their mental health (54% vs. 42%
without an advisor).
"While our findings show Canadian workers' financial and mental
health is low, the good news is that we can see what helps," said
Brett Marchand, head of group
retirement, Canada, Manulife.
"Greater engagement—through financial wellness programs and
professional financial advice—can help employees manage financial
stress and improve mental health, while helping their employers
with talent acquisition and retention, productivity, and the bottom
line."
Methodology
The 2022 stress, finances, and well-being survey was
commissioned by Manulife and John Hancock Retirement and conducted
by Edelman DXI. It was conducted with 1,551 Canadians using
Angus Reid's research panel. The
survey was conducted in English and French from November 28, 2022, to December 8, 2022. Manulife is not affiliated with
Edelman DXI and neither is responsible for the liabilities of the
other.
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 19 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. 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, 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 2022, we had more than 40,000 employees,
over 116,000 agents, and thousands of distribution partners,
serving over 34 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.
___________________________
|
1 This is a hypothetical
illustration used for informational purposes only based on data
from Manulife's 2022 stress, finances, and well-being survey. This
calculation is intended to provide general information about how
much financial stress can cost a company every year. The
calculation is based on missing 5.6 hours/year and 28.8 hours/year
of lost productivity due to symptoms of financial stress with an
assumed salary of $51.92/hour. Individual circumstances may vary:
The example may not be reflective of your situation.
|
2 This is a hypothetical
illustration used for informational purposes only, based on data
from Manulife's 2022 stress, finances, and well-being survey. This
calculation is intended to provide general information about how
much financial stress can cost a company every year. The
calculation is based on missing 5.6 hours/year and 28.8 hours/year
of lost productivity due to symptoms of financial stress with an
assumed salary of $51.92/hour. Individual circumstances may vary:
the example may not be reflective of your situation.
|
SOURCE Manulife