National Workplace Savings Survey shows 4 in 5 without a workplace
savings plan worry about retirement lifestyle
TSX/NYSE/PSE: MFC SEHK:945
TORONTO, Dec. 13, 2012 /CNW/ - In a survey of Canadians from across the
country, Manulife Financial found that respondents were twice as likely
to support a Pooled Registered Pension Plan (PRPP) (64 per cent),
rather than increase their CPP or QPP contributions (34 per cent) as a
means to save more for retirement.
"Canadians strongly support the introduction of PRPPs and are looking to
their provincial governments and employers to make it happen," said Sue
Reibel, Senior Vice President and General Manager, Group Retirement
Solutions, at Manulife Financial.
Across the country, 74 per cent of respondents said it's 'important' or
'very important' for their province to introduce legislation to make
PRPPs available. That figure climbs as high as 85 per cent in Quebec
and 84 per cent in Newfoundland.
The National Workplace Savings Survey asked more than 7,700 employed
Canadians about their attitudes and convictions towards retirement
planning and savings and their attitudes towards enrolling in a PRPP.
PRPPs are workplace savings plans for employees of small to medium-sized
businesses or the self-employed with contributions conveniently
deducted from each pay. Contributions are invested in a larger pool of
funds, which can result in lower fees than if an individual invested on
her or his own. Employees are automatically enrolled but can opt-out
and have the flexibility to increase or reduce contributions.
Only 10 per cent of Canadians employed at workplaces with less than 100
employees have access to a pension plan. The federal government
introduced PRPP's to help address this gap and in turn the gap between
the savings rates of Canadians and their expected retirement needs.
Of those surveyed, 69 per cent are worried that they won't have enough
savings to maintain their current lifestyle in retirement. That figure
increases to 78 per cent for those that don't currently have a
workplace retirement plan.
The absence of a workplace retirement plan would discourage 69 per cent
of employees from switching jobs to that employer.
Seventy-seven per cent believe saving through a PRPP would make it
easier for them to reach their retirement goals.
"These survey findings reinforce the concerns Canadians have about the
retirement savings gap and their belief that PRPPs can play an
important part in bridging that gap," said Ms. Reibel. "They underscore
the importance of the work that the federal and provincial governments
started in 2010 when they introduced PRPPs."
Graphs depicting the number of Canadians worried about retirement and
the number of Canadians believing it is important their own provinces
introduce PRPPs are available.
About the Manulife Financial 2012 National Workplace Savings Survey
From October 23 to November 7, 2012, an online survey was conducted by
Vision Critical among 7,759 randomly selected employed Canadian adults
who are also Angus Reid Forum panelists. The margin of error—which
measures sampling variability—is +/- 1.1%, 19 times out of 20. The
results have been statistically weighted according to the most current
age, gender and region census data to ensure a sample representative of
the entire population of Canada. Discrepancies in or between totals are
due to rounding.
About Manulife Financial
Manulife Financial is a leading Canada-based financial services group
with principal operations in Asia, Canada and the United States. In
2012, we celebrate 125 years of providing clients 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$515 billion (US$523
billion) as at September 30, 2012. 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.
PDF available at: http://stream1.newswire.ca/media/2012/12/13/20121213_C8575_DOC_EN_21921.pdf
SOURCE: Manulife Financial Corporation
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