Making new connections: health, finances, and workplace engagement GBRS Distribution - Presentation to Advisors

Rationale behind the research

 1 in 3 workplace disability claims are now related to mental illness 1  Half of all workers in Canada say they have or have had a mental health issue 2  Almost 90% of employers identified stress as the most significant mental health concern 3 1.Sairenen, S., Mantzanke, D., Smeall, D. (2011) 2.Conference Board of Canada (2011) 3.Ceridian Workplace Wellness Survey (2013)

Sources of stress  Industry restructuring, a challenging economy and family/personal environment can all be sources of stress  However, almost 3 out of 4 Canadians are also carrying large amounts of debt 1  The average Canadian owes $1.65 for every dollar of disposable income earned 2  With consumer debt so high and mental health claims increasing, Manulife wanted to explore the links between employee financial stress, physical health and mental health.  Did it affect performance on the job? 1.CIBC Debt Poll, May Financial Post/Bloomberg News, Mar. 15, 2013

The 2014 Manulife/Ipsos Reid Health & Wealth Wellness Study Methodology 2000 working Canadians Working 20+ hours Ages Half with plans Varying income levels

The “Financially Prepared” vs. the “Financially Unprepared” Financially Prepared:  Managing debt levels well  Adequate savings in the bank  Saving sufficiently for retirement Financially Unprepared:  High debt levels  Minimal savings, maxing out credit  Not saving for retirement

Employee Engagement  Cares about their work and accomplishing company goals  Isn’t working just for the money, they truly want to be there  Willing to work overtime when asked or needed

Takeaway 1 There are strong links between how financially prepared an employee feels, and how healthy, engaged and productive they are in the workplace.

Takeaway 1: Financially prepared employees are…. 22 % 21 % 18 % 16 % MORE ENGAGED IN THEIR WORKPLACE MORE LIKELY TO ENJOY THEIR WORK MORE LIKELY TO SAY THEY ARE MOTIVATED TO DO THEIR BEST AT WORK MORE LIKELY TO SAY THEY’RE PRODUCTIVE THAN THOSE FINANCIALLY UNPREPARED

Takeaway 1: Financially unprepared employees are… 2x 80 % 2x 65 % AS LIKELY TO BE DISTRACTED AND UNFOCUSED AT WORK, WORRYING ABOUT FINANCES MORE LIKELY TO BE LIVING PAYCHEQUE TO PAYCHEQUE AS LIKELY TO HAVE DIFFICULTY MAKING ENDS MEET MORE LIKELY TO BE DISTRESSED ABOUT THEIR FINANCIAL SITUATION

Takeaway 1: Financially unprepared employees are… 44 % 80 % 2x MORE LIKELY TO BE WORRIED ABOUT THE FINANCIAL STATE OF THOSE THEY LEAVE BEHIND AS LIKELY TO BE FEELING STRESS ABOUT THEIR LACK OF RETIREMENT PLANNING LESS LIKELY TO HAVE SET A RETIREMENT SAVINGS GOAL

Takeaway 1: How many are financially unprepared? 1 in 5 employees are financially unprepared

Takeaway 2 There is a positive link between health and financial wellbeing. Employees that are financially prepared are more likely to be healthier than those feeling unprepared.

Takeaway 2: The link between financial wellbeing and health Survey shows that financial wellness – in addition to physical and mental wellness – needs to be a part of an overall workplace wellness strategy More likely to exercise 1+ hours weekly More likely to identify as being very healthy

Takeaway 3 Having a workplace benefits and retirement savings plan is a way to become financially prepared.

Takeaway 3 MORE LIKELY TO BE FINANCIALLY PREPARED THAN THOSE WITHOUT PLANS* OF THOSE WITH WORKPLACE PLANS WERE FINANCIALLY PREPARED OF THOSE WITHOUT WORKPLACE PLANS WERE FINANCIALLY PREPARED MORE LIKELY TO HAVE A PERSONAL RETIREMENT SAVINGS PLAN MORE LIKELY TO HAVE A PERSONAL DEBT MANAGEMENT PLAN 53 % 80 % 52 % 66 % 70 % * Those with both workplace benefits and retirement savings plans

Takeaway 4 Financial advisors improve chances to be financially prepared.

Takeaway 4 5x more likely to have a financial advisor 3.5x more likely to have set retirement goals Financial advisors help clients not only develop financial goals and plans but also to stick to them

Encourage your clients to help their employees become financially prepared

Encourage your clients to help their employees stay active and lead a healthy lifestyle

Encourage your clients to help their employees find and work with an advisor

How the “health and wealth” findings can help you  For companies without any workplace plans:  The “health and wealth” approach offers a strong argument for businesses to adopt both benefits and retirement plans to help build a workforce that’s engaged, productive and committed to helping businesses thrive  For companies with a benefits plan but not a retirement plan:  The links between financial preparedness, health and productivity can help build a strong case for the adoption of a retirement savings plan  Companies can leverage retirement plans to help drive company success (e.g. by helping employees become more financially prepared, companies can help boost engagement and productivity)

How the “health and wealth” findings can help you with clients  Create a stronger “sales pitch” on the advantages of offering their employees both a benefits AND a retirement savings plan.  Build stronger relationships with your clients by bringing them fresh new solutions that can help improve workplace engagement and productivity.  Show a greater level of expertise and value to your clients than other advisors by demonstrating how benefits and pension plans can drive company success.  Offer the coverage, products and educational resources that will help ensure their employees can bring their best to work, every day.

Tools and resources Repsource Manulife.ca Benefit to the MAX Calculator Ride to 65! Interactive retirement planning game Financial Planning IQ Quiz Tale of Two Investors Calculator Income and Expense Calculator Create a Budget Infographic

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