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Manulife USA-Commissioned Survey Shows Workers Who Set Goals Feel More Confident About Retirement -- Overall, workers more optimistic about their financial futures -- Boston - In their ongoing efforts to identify and educate the industry about the savings behaviors and motivations of American workers, Manulife USA has commissioned its second annual Financial Dreams and Fears of American Workers Study.1 This year’s survey identifies the positive impact of attempting to calculate the amount of money that will be needed for retirement even as it reveals that many Americans have not yet attempted to do so. Still, the study also finds that American workers surveyed feel more upbeat and less fearful about their financial futures than last year’s respondents. According to the results, one half of all American workers have not tried to calculate how much money they need to have saved by the time they retire. Of those who have tried to set a retirement savings goal, however, the majority felt this exercise to be beneficial. Fully 83% of workers who have tried to calculate a savings goal say this exercise had a moderate to large impact on moving them closer to their dream of a comfortable retirement. At the same time, only 61% say that regular saving each month without a set goal has had this kind of impact. “These findings parallel Manulife USA’s research with employees who participate in the 401(k) plans we provide services to through our group annuity contract,” said Ralph Vizl, Vice President of Strategy and Research for Group Pensions, Manulife USA. “Again and again 401(k) participants have told us what a difference setting and working toward a goal makes and how much more confident they feel about retirement after doing this. In fact, this type of research was the impetus behind our new participant communication program, which is aimed at guiding workers through the goal-setting process in an easy, enjoyable, and personally relevant way.” Overall, the American workers surveyed have become more optimistic with regard to their financial futures over the past year, and this optimism shows in how well people feel they are doing in reaching the nearly universally held dream of having a comfortable retirement. The share of American workers who say they are behind schedule or have not started saving for retirement has shrunk from 75% in 2002 to 67% in 2003. Furthermore, the dream of having a comfortable retirement is becoming a higher priority, with 70% saying it is one of their top two financial dreams, up from 61% in 2002. Despite these steps in the right direction, more than half of American workers surveyed still believe they are behind schedule or worse in saving for their retirement and other financial dreams. “Workers can have their dreams of a financially comfortable retirement come true, but they clearly have to do more to make that happen,” said Mathew Greenwald, president of Mathew Greenwald & Associates, the firm that conducted the research on Manulife USA’s behalf. “Without a greater savings effort, the major dream of this generation of workers will be denied to many.” Even so, the 2003 survey indicates a sense of optimism absent from the previous year’s results, and this optimism is manifested in a number of ways. For example, there has been an increase in the share of workers surveyed who feel they are doing a good job saving money, with 41% stating they feel excellent or very good, up 8% from 2002. In addition, more than a third (38%) think the economy will get better over the next 12 months, compared to 24% who think it will get worse. This confidence seems to have carried over into workers’ opinions about investing, as the survey finds more interest expressed in investing in equities, with 28% growing more comfortable investing in them and only 19% expressing increased comfort investing in more conservative financial products like certificates of deposit (CDs). At the same time, the number of financial fears American workers have (out of nine measured in the survey) has dropped to an average of 5.2 financial fears in 2003, down from 5.6 in 2002. “From these findings, it seems that recent improvements in the economy are having a perceptible impact on the way people think about saving money,” said Paul Henry, Director of Strategic Planning and Market Research for Group Pensions, Manulife USA. “American workers are responding with higher hopes for actually being able to achieve realistic retirement goals and seem less burdened by various types of financial fears. This renewed optimism provides plan sponsors with an excellent opportunity to reengage workers in the retirement planning process.” About Manulife The Manufacturers Life Insurance Company (U.S.A.) (Manulife USA) is committed to offering the highest quality life insurance, pension, and individual wealth management products to its clients. Its family of products has been built around a powerful combination of investment options chosen with the goal of providing attractive risk-adjusted returns and broad diversification across asset classes, investment styles, and asset managers. With its extensive product lines, competitive underwriting, excellent ratings, and quality customer service, Manulife USA is dedicated to providing quality products designed to help create and preserve wealth for its clients. Group annuity contracts are issued by Manulife USA. Product features and availability may differ by state. In New York, products are issued by The Manufacturers Life Insurance Company of New York (Manulife New York). Manulife Financial is a leading Canadian-based financial services group operating in 15 countries and territories worldwide. Through its extensive network of employees, agents and distribution partners, Manulife Financial offers clients a diverse range of financial protection products and wealth management services. Funds under management by Manulife Financial were US$111.7 billion (Cdn$150.8 billion) as at September 30, 2003. Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘0945’ on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com. For copies of the abridged study, call 617-854-8651. 1 These key findings are from the 2003 Financial Dreams and Fears of American Workers Study that surveyed a random sample of 304 people across the United States over age 21 who are working full or part time in companies with 5 or more employees; a similar survey of 401 workers was conducted in July 2002. The 2003 survey was conducted in August of this year through a 15-minute national survey. The study was commissioned by Manulife USA and was conducted by Mathew Greenwald & Associates, a market research firm headquartered in Washington, DC. -30- Media Contact:Heather Randolph Carter U.S. Communications 617-854-4342 heather_carter@manulife.com |
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