Manulife PRPP Survey Finds Canadians Prefer Expanding Workplace Pensions over
Higher CPP or QPP Contributions
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
"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
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
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
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 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
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-0- Dec/13/2012 14:00 GMT
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