Tag Archives: Manulife Financial

A little planning today will benefit your loved ones when you’re gone

We often focus most of our planning on things like building wealth, paying off debt, transitioning to retirement, and taking care of ourselves physically and mentally.

All these worthy projects should be joined by another – estate planning. It’s important to think about what your loved ones will need once you’re gone.

Save with SPP took a look around the Interweb to see what the experts advise about estate planning for Canadians.

At the Advice for Investors blog, the main tips are having an updated will, naming powers of attorney and jointly holding assets.  The blog cites a recent RBC study that found that only half of Canadians had a will and “one in three had done nothing at all to prepare for passing on wealth to the next generation.”

Without a will, the blog warns, “provincial bureacrats will determine how the estate is distributed,” rather than you. Having powers of attorney in place for legal/financial matters and health will be of critical importance should you suddenly lose the ability to manage your own affairs, the blog notes.

And when you make your assets joint with your spouse, “the interests of a deceased owner automatically gets transferred to the remaining surviving owners,” the blog notes.

The MoneySense blog adds in a few more ideas – life insurance, the idea of giving away money to family while you are still alive and setting up trusts for kids and grandkids.

Insurance, notes Lorne Marr of LSM Insurance in the MoneySense blog, “may be used as an estate planning tool – an opportunity to leave a legacy or pay taxes so your heirs don’t have to.” The article suggests insurance is best taken out at a young age, when your health is at its best. You should buy enough insurance to cover all your debts and replace what you earn, the article notes.

Giving gifts to adult children while you are still alive “may reduce the overall tax burden on your estate when you die,” notes Lawrence Pascoe, an Ottawa attorney, in the MoneySense article. “Gifting money is a good way to help out your kids while you’re still alive and can watch them enjoy it,” he states in the article.

For younger kids, the article notes, you can set up a trust account that provides them with income at a later age. “You can stipulate what the funds can be used for, such as educational expenses, a new home, retirement savings,” the article notes.

The Manulife Financial website devotes an entire web page to one thing – beneficiary designation for insurance and/or a retirement plan.

If you don’t name a beneficiary – or name minor children as one – your estate may get tied up in probate, the article warns. In some provinces your spouse is automatically your beneficiary – check before you sign, the article suggests. If there’s a way to name a contingent beneficiary – someone to pay out the assets to if your chosen beneficiary dies before the payout – do so. And be sure to review your beneficiary designations regularly, the article concludes.

If you’re a member of the Saskatchewan Pension Plan you can look after your survivors in several ways. Your SPP beneficiary will receive any assets in your account if you die before collecting a pension and a variety of different options are available for your spouse and beneficiary upon your death after retirement. Check out SPP today.

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.

Financial stress can affect your health

By Sheryl Smolkin

Have you ever had that sick feeling in the pit of your stomach when you realize the sum total of everything you owe each month is more than your take home pay? You are not alone.

According to the latest Manulife Financial Wellness Index, two in five Canadians say they are financially unwell. Study respondents are concerned by debt (82%), not saving for retirement (60%), stressed due to their financial situation (67%) and 83% said they are not financially prepared to protect their loved ones in the event of death, serious illness or disability.

“We want to help Canadians live better and healthier lives. Looking at people’s wellness has traditionally included physical aspects, and in recent years focused more on emotional health,” said Sue Reibel, Executive Vice-President and General Manager Institutional Markets, Manulife. “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.”

Financial wellness is based on the way an individual manages their overall financial situation, including budgeting, retirement planning, investing, debt management, financial protection and financial stress. Manulife’s research shows that money continues to be the greatest source of stress and it impacts an individual’s mental health leading to absenteeism rates and lost productivity.

Canadians who consider themselves financially unwell revealed that dealing with money is a factor of stress (81%, often/sometimes) and they are eight times more likely to have bad stress levels and may be distracted at work (49%, often/sometimes).

Healthy finances and a healthy lifestyle go hand in hand. Canadians who are financially well are more likely to be successful at managing their health according to the Financial Wellness Index. Those with low levels of financial wellness are almost five times more likely not to engage in any healthy activity.

Canadians who say they are financially well are more likely to say that their physical health is excellent (25%) or good (45%), they eat more fruits and vegetables (79%), get more exercise (68%), get regular health checkups (61%) and educate themselves on being healthier (46%).

In addition, if your employer offers group benefit plans, they have an impact on your financial wellness and health. Those who are financially well are more likely to have a group retirement (65%) and group benefits plan (79%) compared to those who are financially unwell (42% and 58%, respectively).  Also, those who have group benefits plans are more likely to score better on the stress index (56%) than those who do not have any plans (48%).

“Employers have an important role to play in their employees’ wellness, physically, mentally and financially. Their actions can positively impact the level of engagement and productivity of their teams, which in the long-term can impact their bottom line,” added Reibel.

About the Manulife Financial Wellness study
Environics Research Group surveyed 2,024 Canadians, 18 and over, between August 31 and September 7, 2016, asking them about budgeting, retirement, investments, debt, protection and stress. Respondents were equally split along gender lines, average age was 47, and quotas and weighting were used to ensure that results reflected the Canadian reality in terms of age, gender and region.