Many Canadians feel sorely financially unprepared for retirement and to protect their loved ones if an unexpected event such as death, serious illness or disability were to take place, according to the latest edition of Manulife Financial Corp.’s financial wellness index, which was published Friday.
Specifically, of the 40% of participants surveyed who say they are financially unwell, 60% say they aren’t saving enough for retirement. In fact, a meager 1% of survey participants report that they save regularly for retirement and expect to meet their goals.
About 83% also say they aren’t financially prepared to protect their loved ones if, for example, a disability or health emergency were to happen to them. Other concerns that weigh heavily on Canadians include debt, at 82%, while 67% feel stressed due to their financial situations.
These particular findings point to areas financial advisors can direct their energies toward when meeting with clients to help them map out their financial outlook and to address nagging concerns. And, with just 22% of those who are financially unwell saying they retain an advisor, the report suggests that there’s an advice gap that stands to be filled.
The annual survey takes the temperature of Canadians’ outlook on their financial well-being. It asks participants about their budget, debt, investments, retirement and protection plans.
The poll also finds that Canadians who are financially well are twice as likely to have a protection plan, such as a group benefits plan, in place for unexpected events. In fact, just 11% of those who aren’t in good shape feel protected if unforeseen circumstances interfered with their ability to financially support their family.
Of those surveyed who hold a group retirement plan, those individuals are twice as likely to consider themselves retirement ready and financially well.
Among those who are financially unwell — Manulife defines financial wellness both in physical and emotional terms — 56% say they have “little knowledge of investments.”
In addition, of the 2,204 Canadians polled, 34% say they are financially well while 26% are financially OK.
Poor financial wellness, the report suggests, not only hampers productivity and increases the likelihood of absenteeism, but it also affects how knowledgeable individuals feel about investing.
“Our findings show that the role of financial wellness, whether good or bad, affects overall well being and is an important contributor to helping Canadians reach positive emotional health,” says Sue Reibel, executive vice president and general manager of institutional markets at Manulife, in a statement. ”
The report also notes that those who are in good financial shape are more likely to adopt and engage in healthy activities. For example, 68% of those who consider themselves financially well say they exercise regularly compared with only 45% of those who have a negative view of their well being.
The online questionnaire, which sampled men and women, aged 18 or older, evenly, was conducted between Aug. 31,2016 and Sept. 7, 2016. The average age of participants was 47. Environics Research Group collected the responses for Manulife.
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