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WATERLOO, ON, May 14, 2012 /CNW/ - Eight in 10 Quebec homeowners (79%) indicate that "being debt-free" is very important to their definition of a successful retirement, according to a recent debt and retirement survey conducted by Manulife Bank of Canada. Despite that, fewer than half (four in 10) of Quebec homeowners polled would continue to work past their planned retirement age if they still had debt at that time, compared with almost six in 10 homeowners from other regions in Canada.
In Quebec, debt-freedom ranks third in importance behind "good health" (92%) and "sufficient income to maintain my current lifestyle" (84%), in contrast to the rest of Canada where only "good health" tops debt-freedom as a defining feature of successful retirement.
This is the first time that Manulife Bank has focused on surveying Canadians about debt in the context of retirement planning. Additionally, Manulife Bank has increased the sample size to allow for regional-specific data demonstrating similarities and differences in how Canadians view debt across the country.
"The results indicate that, no matter where people live in Canada, debt is a significant concern when considering retirement," stated Luc Gingras, a Financial Security Advisor and owner of Corporation financière EquiStrategies Inc in downtown Montréal. "In Quebec, where there is a strong commitment to a planned retirement, many homeowners could benefit from reaching out to a financial advisor for assistance in creating a debt repayment plan. Just like a well balanced diet must include all food groups, a well balanced financial strategy must include debt repayment as one of its main components. Your core financial strategies must be coherent with one another. Only then can you aspire to financial fitness."
Across Canada, debt-freedom expectations change as people get older
Manulife Bank's debt and retirement survey found that three in four Canadian homeowners consider debt-freedom to be among their top financial goals - a finding that is relatively consistent with Manulife Bank's past consumer debt studies. However, their expectation about when they will actually achieve debt-freedom appears to be largely dependent upon their age, a finding that is consistent across the country.
Most Canadian homeowners in their 30s (73%) who reported having debt expect to be debt-free before they turn 60. That number decreases to two-thirds for homeowners in their 40s. Just one third of homeowners in their 50s expect to be debt-free before they turn 60, with one in five indicating they either don't know when they'll be debt-free (14%) or don't expect to ever be debt-free (7%).
Overall, just over half of the survey respondents are confident they will be free from debt when they reach their planned retirement age. This relative lack of confidence appears to be well-founded, as only half of Canadian homeowners report having less debt than they did 12 months ago.
"It's encouraging to see younger homeowners express optimism about becoming debt-free" added Doug Conick, President and CEO of Manulife Bank of Canada. "However, the experience of more seasoned homeowners, revealed by the survey, underscores the importance of developing a concrete debt-reduction plan and sticking to it. Most will find becoming debt-free much easier if they have a concrete plan for how to get there."
In Quebec, homeowners focused on repaying debt
Quebecers are taking steps to repay debt. Of homeowners who are neither debt-free nor retired, 38 per cent plan to focus more on debt repayment than on saving for retirement over the next 12 months, compared with just 7 per cent stating the reverse. This is particularly notable considering that Quebecers are the only Canadians who rank "sufficient income to maintain my current lifestyle" above "being debt-free" in importance for defining a successful retirement.
The results indicate that homeowners in Quebec have a stronger than average commitment to managing debt. As a part of their focus on debt repayment, Quebecers living in two-adult households are diligent in reviewing household debt with one another, with almost six in 10 couples reporting that they review debt together at least once a month, higher than the 46 per cent reported across the other regions.
Interestingly, despite the strong stated commitment to managing debt in Quebec, only four in 10 Quebec homeowners seek professional advice to manage their debt and day-to-day cash flow. Of those who do seek financial advice, almost three quarters (72%) have a concrete plan for becoming debt-free.
Retirement is a priority, regardless of debt
Despite the clear perception that debt freedom is critical to successful retirement, homeowners in Quebec are committed to the retirement date they've selected, with more than half (52%) indicating they would retire even if they had debt, compared with just a third (36%) of homeowners from other regions.
About the Manulife Bank of Canada Debt and Retirement Survey
The Manulife Bank of Canada poll surveyed 2,003 Canadian homeowners between ages 30 to 59 with household income of more than $50,000. It was conducted online by Research House between March 5 and March 16, 2012. Full survey results are available at manulifebank.ca/debtresearch.
Audio clips and infographics attached. More audio clips and infographics can be found at repsourcepublic.manulife.com
About Manulife Bank
Established in 1993, Manulife Bank was the first federally regulated bank opened by an insurance company in Canada. It is a Schedule l federally chartered bank and a wholly-owned subsidiary of Manulife Financial. As Canada's first advisor-based bank, it has successfully grown to more than $20 billion in assets and serves clients across Canada. Manulife Bank believes that effective debt management is a key contributor to financial health and that, by working with a Financial Advisor to create a customized financial plan that incorporates debt and cash flow management, many people could save money, become debt-free sooner and achieve more of their financial goals. It's for this reason that Manulife Bank offers its innovative deposit and loan products through independent financial advisors to help individuals make the most of their financial plan. Manulife Bank employs a team of specialists across the country that work with homeowners and financial advisors to design cash flow programs that are more effective, efficient and flexible. For more information about Manulife Bank products, speak to your financial advisor or visit manulifebank.ca. To learn more about Manulife One or Manulife Bank Select, or to find your local Manulife Bank specialist, ask your advisor for a referral or visit manulifeone.ca or manulifebankselect.ca.
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$512 billion (US$512 billion) as at March 31, 2012. The Company operates as Manulife Financial in Canada and Asia and primarily as John Hancock in the United States.
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: "Retiring from Debt in Quebec (CNW Group/Manulife Financial Corporation)". Image available at: http://photos.newswire.ca/images/download/20120514_C7076_PHOTO_EN_13622.jpg
Audio with caption: "Doug Conick, President and CEO of Manulife Bank of Canada - Retiring from Debt in Quebec". Audio available at: http://stream1.newswire.ca/media/2012/05/14/20120514_C7076_AUDIO_EN_13626.mp3
Media contact:
Tracy Van Kalsbeek
Public Relations Consultant
Manulife Financial Canadian Division
519-594-4697
[email protected]
About Manulife Manulife Financial Corporation is a leading international financial services provider, helping people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we provide financial advice and insurance, operating as...
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