Worry While You Work: Employees Worrying at Least Once a Week About Personal Finances, Finds John Hancock Financial Stress Survey
Worry While You Work: Employees Worrying at Least Once a Week About Personal Finances, Finds John Hancock Financial Stress Survey |
[22-October-2019] |
Employer Financial Wellness Programs May Help with Stress and Retention TSX/NYSE/PSE: MFC SEHK: 945 BOSTON, Oct. 22, 2019 /PRNewswire/ - John Hancock Retirement today announced the results of its sixth annual Financial Stress Survey of retirement plan participants, revealing the weight of financial stress on workers and its impact on employers. The survey reports that more than half of respondents worry about personal finances at work at least once a week, causing workplace distraction and loss of productivity. This loss of productivity combined with absenteeism from financial stress has major impact on organizations, costing more than an estimated $1,900 per year, per employee, and totaling an estimated annual loss of $1 million for midsized employers and $19 million for large employers.1
The survey did find that employer financial wellness programs may improve job retention, stress levels and job productivity. Seventy-seven percent of respondents find financial wellness programs important and seven in ten feel these programs have helped reduce their financial stress and increased their loyalty to their employer. While 88% of employers say they currently have or are developing a financial well-being strategy, only 20% of participants claim their employer offers anything more than a limited financial wellness program.2 "Our 2019 Financial Stress Survey highlights a downward trend on retirement readiness and indicates participants' financial situations are at risk, with 36% of participants responding they are not in a good financial situation," said Patrick Murphy, CEO, John Hancock Retirement. "Seventy-one percent of participants are worried about having financial difficulties – the most we have seen from this survey in the past six years. We must come together as recordkeepers, financial representatives, and plan sponsors to help participants plan for their future and better understand the underlying cause of financial stress and its effect on retirement savings." Year over year, the number one financial worry is saving for retirement, except for those with student loan debt. Higher than in previous years, as much as 51% of workers consider themselves behind schedule when it comes to saving for retirement. Lack of emergency savings is the number two financial worry among all participants, and 25% have no emergency savings at all, which is even more pronounced for Generations X, Y, and Z where almost a third are in that position. The survey also found that fewer people are taking action to help their financial situation, with only about one of four respondents having met with a financial advisor, contributed to an IRA or allocated to a health savings account. John Hancock's 2019 Financial Stress Survey highlighted the following:
Mr. Murphy added, "We recognize the potential impact that working with a financial representative and participating in a workplace financial wellness program may have on a participant's ability to contribute more significantly to savings and stay on track for retirement. We have also identified the critical areas where participants need help planning for retirement, and are committed to bringing personalized programs to market, that help them tackle the key components of financial stress." Tools for financial success To see the 2019 John Hancock Financial Stress Survey white paper or learn more about John Hancock Retirement, please click here or visit https://retirement.johnhancock.com/us/en. Methodology About John Hancock Retirement * As of June 30, 2019, John Hancock Life Insurance Company (USA) supported 46,547plans, 1,605,076 participants, and $88,464,393,180 in AUMA. John Hancock Life Insurance Company of New York supported 2,527 plans, 75,000 participants, and $5,165,273,862 in AUMA. John Hancock Retirement Plan Services, LLC supported 11,058 plans, 1,207,998 participants, and $77,201,601,108 in AUMA. Participant Counts reflect all active participants with a balance. Approximate unaudited figures for John Hancock, provided on a U.S. statutory basis. About John Hancock and Manulife One of the largest life insurers in the United States, John Hancock supports approximately 10 million Americans with a broad range of financial products, including life insurance, annuities, investments, 401(k) plans and college savings plans. Additional information about John Hancock may be found at johnhancock.com. About Manulife Investment Management Headquartered in Toronto, we operate as Manulife Investment Management throughout the world, with the exception of the United States, where the retail and retirement businesses operate as John Hancock Investment Management and John Hancock, respectively; and in Asia and Canada, where the retirement business operates as Manulife. Manulife Investment Management had C$844 billion (USD $645 billion) in assets under management and administration as of June 30, 20193. Not all offerings available in all jurisdictions. For additional information, please visit our website at manulifeinvestmentmgt.com.
John Hancock Retirement Plan Services, Boston, MA 02116. NOT FDIC INSURED. MAY LOSE VALUE. NOT BANK GUARANTEED. © 2019 All rights reserved.
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