2006 News Releases

Boston – Gifts of financial support for college education are popular among parents and grandparents, according to a national survey of 2,000 conducted by Synovate for John Hancock. More than two-thirds (66.9%) of parents, and nearly half (46.5%) of grandparents surveyed said they had or planned to give financial gifts to their (grand) children for their college education.

And that appears to be critical as 92.6 percent of parents said it was important to be able to pay for whatever college their child(ren) wanted to attend, yet 43.4 percent said they were counting on others to help with the financing of their child(ren)’s education.

The vast majority of grandparents (83.1 %) said they would prefer to give gifts of contributions for college education than toys or clothes. And nearly an equal number of parents (80.9%) said they’d prefer to have their children receive contributions for college education as gifts rather than toys or clothes.

“Parents and grandparents know that by making contributions to their children and grandchildren for college, they are providing the kids tremendous opportunity in the future,” said Diana Scott, Senior Vice President and General Manager of John Hancock College Savings. According to a 2002 Census Bureau Report, lifetime earning potential for college grads can be double or more than double what those with only a high school diploma earn¹  And college tuition rates continue to increase according to the College Board’s Annual Survey of Colleges.²

Asked when and how to give, respondents had different answers. Nearly half (46.2%) felt a gift for college education needed no special occasion. Following that were: at graduation (31.4%), on the child’s birthday (11.7%) and on the child’s birth (5.6%). “This was surprising given the fact we’ve found our busiest season to be during the December holidays and year-end tax planning season,” said Scott, whose business unit sells John Hancock Freedom 529.

Roughly half (53.6%) felt the best way to give the gift was setting aside money in a mutual fund or bank account, a third (33%) said contributing to a 529 college savings plan and 7.2 percent said they felt giving cash was best.

“529 savings plans are relatively new compared with other traditional college savings vehicles and have made tremendous inroads over other types of savings vehicles,” said Scott. “With this summer’s Pension Protection Act making permanent the significant tax advantages of federal tax free distributions offered by 529 plans, we expect this number to continue to grow.”

Methodology
John Hancock commissioned the survey through Synovate’s eNation service, based in Chicago, Ill. Two thousand individuals 18 years of age or older in the contiguous U.S.A were queried through online surveys. The sample consists of individuals selected from the online segment of Synovate’s Consumer Opinion Panel, and is balanced to be representative of the general population based upon region, gender, age, and household income data from the U.S. Census Bureau.

John Hancock Freedom 529
John Hancock Freedom 529 is a national Section 529 college savings plan. John Hancock Freedom 529 is offered by the Education Trust of Alaska, managed by T. Rowe Price, and is distributed by Hancock Distributors LLC, through other broker/dealers that have a selling agreement with John Hancock Distributors LLC. John Hancock Distributors LLC is a member of the NASD and is listed with the Municipal Securities Rulemaking Board (MSRB). The plan offers a multi-managed approach, allowing investors to work with their financial consultants to pursue a strategy to maximize their investment opportunities, while managing risk. Expanding upon the inherent advantages of a typical 529 savings plan, the product offers investment choices from some of the nation’s top mutual fund managers.

About Manulife Financial and John Hancock
John Hancock is a unit of Manulife Financial Corporation, a leading Canadian-based financial services group serving millions of customers in 19 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through John Hancock in the United States, the Company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were Cdn$370 billion (US$332 billion) as at June 30, 2006. Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘0945’ on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.

The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers a broad range of financial products and services, including universal life insurance, variable life, term life and whole life, as well as college savings products, fixed and variable annuities, long-term care insurance, mutual funds, 401(k) plans and various forms of business insurance.

If your state or your designated Beneficiary's state offers a 529 plan you may want to consider what, if any, potential state income tax or other benefits it offers, before investing.
State tax or other benefits should be one of many factors to be considered prior to making an investment decision. Please consult with your financial, tax or other advisor about how these state benefits, if any, may apply to your specific circumstances. You may also contact your state 529 plan or any other 529 college savings plan to learn more about their features.  Please contact your financial consultant or call 1-866-222-7498 to obtain a Plan Disclosure Document or prospectus for any of the underlying funds. The Plan Disclosure Document contains complete details on investment objectives, risks, fees, charges and expenses, as well as more information about municipal fund securities and the underlying investment companies that should be considered before investing. Please read the Plan Disclosure Document carefully prior to investing.

John Hancock Freedom 529 is a college savings plan offered by the Education Trust of Alaska, managed by T. Rowe Price, and distributed by John Hancock Distributors LLC through other broker/dealers that have a selling agreement with John Hancock Distributors LLC.  John Hancock Distributors LLC is a member of the NASD and is listed with the Municipal Securities Rulemaking Board (MSRB). © 2006. John Hancock Life Insurance Company (U.S.A.), a Manulife Financial Company. All rights reserved. Information included in this material is believed to be accurate as of the October 2006 printing date. MLI1016067093

529 plans are not FDIC insured, may lose value and are not bank or state guaranteed.

^{1High School graduates on average can expect to make $1.2 million over their working lives while those with a bachelor’s degree can expect to earn $2.1 million, with a master’s degree $2.5 million and those with a professional degree such as a lawyer or physician could make $4.4 million.}

^{2According to the College Board’s 2005 Annual Survey of Colleges: Average total tuition and fees at four-year public colleges and universities in 2005-2006 are 7.1 percent higher than 2004-2005; four year private institutions 5.9 percent higher and at two-year public colleges and universities 5.4 percent higher this year than last.}

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Contact:
Melissa Berczuk
617-663-4750