“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. Based on today’s realities, including roughly 51% of Canadians dipping into their emergency savings or increasing credit card balances since the beginning of the pandemic, only one-third of survey respondents feel their situations will improve in the coming year. Further, while only 44% of respondents reported experiencing financial stress prior to the pandemic, the number grew to 67% following the outbreak.
Simultaneously, the survey results reveal an increased interest in receiving advice from professionals both on retirement saving and investing. In Canada, more than half of the respondents indicated they were interested in retirement planning and investing advice. Nearly three-quarters of U.S. respondents 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 they would seek it out in 2020 versus 50% in 2019.
“This year has challenged employers and employees alike to do business and work in novel ways,” added Brett Marchand, Head of Canada Retirement, Manulife Investment Management. “Employers are in a unique position to support their employees, including alleviating financial stress and offering advice and guidance, which employers can provide through a holistic financial wellness offering."
Opportunity for Employers
With survey respondents reporting increased interest in advice and 75% claiming that an employer-sponsored financial wellness program would positively impact 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 helpful.
Ninety per cent of respondents feel it is important for employers to offer financial wellness programs, including roughly four in 10 who find them highly important. Thirty per cent 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. Nearly one in five Canadian respondents to say they are unsure of whether or not their employer offers a program at all.
Additional noteworthy data from the 2020 Financial Stress Survey include:
· Personal finances and economy: Three-in-ten Canadian respondents say their overall current financial situation is fair or poor. More than a third (35%) of U.S. 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, which could be due to the impact of the COVID-19 pandemic on the economy.
· Employees are more focused on their progress. Despite consumers’ increased worries about their current and future financial positions, they are more in tune with their financial needs than ever before. More than two-thirds of respondents visit their retirement plans at least once a quarter to monitor their finances, including roughly four in 10 (39%) who visit their plans once a month.
· Employees are looking for personalized retirement projections: Eighty-nine per cent of Canadian respondents and 95% of U.S. respondents 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 Canada Retirement, please click
John Hancock 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 Manulife plan members in Canada was conducted in August 2020.
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