Canadians focused on paying for today's lifestyle; one in four without
long-term financial plan
WATERLOO, ON, July 2, 2013 /CNW/ - Canadian investors aged 25 to 34
drove a two-point increase in the latest Manulife Financial Investor
Sentiment Index as younger people are becoming increasingly
The latest results released today show the index up two points since
November 2012, to +22, with overall index ratings highest for the
youngest group of Canadian investors - those 25-34 - at +26. Results
for affluent Canadians - household decision-makers with an income of
$75,000+ and investable assets of 100,000+ - are similar to younger
investors who are significantly more likely to provide high Investor
Sentiment Index scores.
Sentiment increases substantially among younger investors
The +26 ranking marks a substantial increase over November 2012
sentiment scores when Canadians aged 25-34 had the lowest overall
sentiment ranking at +15. Today, 55% of younger Canadians (up from 46%
in the last index) are more likely to say that they are in a better
financial position today than two years ago and more than half (52%)
remain optimistic that they will be in a better position two years from
While the number who say they are on track to meet their current
financial goals remained steady at 37%, there was an increase in the
number of younger Canadians who believe they are ahead of plan - 7%, up
from only 4% in the last index. Additionally, 41% of younger investors
are more likely to say they are behind on their progress toward their
financial goals, but are likely to catch up.
"It's always good to see investor sentiment improve and it's encouraging
to see optimism in younger investors about investing and saving," said
Paul Lorentz, Executive Vice-President, Retail for Manulife Canada.
"Younger investors obviously have the benefit of time on their side
which allows them to plan and adjust accordingly, but the reality is
that while optimism is important, it's actions that will make the
difference. It will take good savings discipline, the right financial
plan and smart investments to ensure they continue to meet their
Canadians paying for lifestyle; financial plans, retirement savings not
Despite the optimism in investing and saving by younger Canadians, the
index shows that the majority of Canadians are focusing on paying for
today's lifestyle and being more conservative in their spending, rather
than focusing further into the future.
Half of Canadians (49%) indicate they have taken steps to reduce their
spending this year however when it comes to longer-term financial
planning, more than one in four (26%) said they do not have an overall
financial plan in place. Of those who do, only half (52%) have reviewed
their plan in the past two years. Only three per cent of Canadians
indicated that obtaining or updating a financial plan was among their
priorities for this year.
"Having a financial plan and a financial advisor to help you is key and
it's important that Canadians understand that they don't have to have a
lot of money to have those things in place," added Mr. Lorentz. "The
overall index - which is +29 for Canadians with a financial advisor
compared with +19 for Canadians without an advisor - clearly shows that
having access to professional financial advice to help you stay on
track can provide a certain peace of mind."
Canadians appear to be heeding the advice of the Minister of Finance and
the Governor of the Bank of Canada to reduce consumer debt. They are
concentrating on paying down debt (41%), trying to maintain their
current lifestyle (38%), and paying off their mortgages (23%). Nearly
half (44%) say they will relax at home or not take a vacation this
summer and of those who are vacationing, approximately two-thirds say
they will pay cash for their travels and they will spend about the same
amount as they did last summer.
Additionally, less than one in ten (9%) Canadians - and only 3% of
younger Canadian investors aged 35-44 - indicate that saving for
retirement is one of their key financial priorities this year. Only 45%
of Canadians indicate that they feel they have sufficient retirement
savings set aside to maintain their current lifestyle.
About the Manulife Financial Investor Sentiment Index
The Manulife Financial Investor Sentiment Index is a semi-annual measure
of investors' views on a range of asset classes and savings and
investment vehicles, as well as their confidence in these areas. The
index is based on an online survey of 1,000 Canadians aged 25+ that was
conducted between May16-27 by Research House, an Environics Company.
The data was weighted according to the 2011 Canadian Census. A national
probability sample of this size would have a margin of error of
+/-3.1%, 19 times out of 20.
In 2012, some changes were made to the survey timing and methodology.
The survey moved from a quarterly survey to a semi-annual survey and
the survey methodology was changed to an online panel; prior surveys
were conducted by telephone. Prior to December 2012, the survey was
based on a sample of Canadians aged 18+; since that time, the survey
has included Canadians aged 25+. Historical comparison may be
influenced by these changes.
About Manulife Financial
Manulife Financial is a leading Canada-based financial services group
with principal operations in Asia, Canada and the United States.
Clients look to Manulife for strong, reliable, trustworthy and
forward-thinking solutions for their most significant financial
decisions. Our international network of employees, agents and
distribution partners offers financial protection and wealth management
products and services to millions of clients. We also provide asset
management services to institutional customers. Funds under management
by Manulife Financial and its subsidiaries were C$555 billion (US$547
billion) as at March 31, 2013. The Company operates as Manulife
Financial in Canada and Asia and primarily as John Hancock in the
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE,
and under '945' on the SEHK. Manulife Financial can be found on the
Internet at manulife.com.
Image with caption: "Younger Canadian investors, aged 25-44, are increasingly optimistic about saving and investing. (CNW Group/Manulife Financial Corporation)". Image available at: http://photos.newswire.ca/images/download/20130702_C4662_PHOTO_EN_28676.jpg
SOURCE: Manulife Financial Corporation
For further information: