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Seniors’ fight for retirement rights benefits younger Canadians

Seniors’ fight for retirement rights benefits younger Canadians Governments should have learned a number of truths about seniors. They are engaged, have insight and knowledge gained from a lifetime of experiences, and know how to come out swinging when their interests are challenged. Yet, says Susan Eng, CARP’s vice-president of advocacy, some politicians seem to have forgotten the lessons of time when it comes ...more

Income inequality divides millennials and boomers

Income inequality divides millennials and boomers It seems there is substance to all that anecdotal chatter about 20-somethings returning to the nest after taking off for school and other life lessons, only to find the cost of going it alone too much for a paltry income to sustain. There’s nothing new about young people landing back on their parents’ couch after flying ...more

Municipalities and pension funds natural match of need and opportunity, says chair of LUMCO

Municipalities and pension funds natural match of need and opportunity, says chair of LUMCO Ontario municipalities need capital for infrastructure projects, big and small, while Canada’s big pension plans have an appetite for investing in such projects. It could be the perfect union of need and opportunity, says the chair of the Large Urban Mayors’ Caucus of Ontario (LUMCO). Jeff Lehman, mayor of Barrie and chair of LUMCO, recently wrote ...more

Business needs to make the case for adequate retirement income

Business needs to make the case for adequate retirement income The retired couple contacted his office about a stark choice confronting them: food or heat. They didn’t have enough money for both. A growing number of reports and anecdotal evidence suggests they aren’t alone, as people across Canada struggle with inadequate retirement income, suggesting that the oft-discussed retirement crisis is now at the doorstep of many ...more

Retirees take aim at feds’ target benefit plans

Retirees take aim at feds’ target benefit plans Getting on the bad side of retired Canadians is never a good idea, a lesson one might have thought today’s generation of politicians would have learned from Brian Mulroney when he tried to de-index pensions back in 1986. After incurring the wrath of seniors, particular one irate elderly woman who told him during a protest on ...more

Voluntary ‘doesn’t work’ as a retirement model: Don Ezra

Voluntary ‘doesn’t work’ as a retirement model: Don Ezra In a perfect world Canadians would be saving enough of their working income to provide for a comfortable and secure retirement. But there’s lots of evidence to conclude that when it comes to retirement planning, it’s far from a perfect world. There is plenty of information to suggest that left to their own devices Canadians can’t ...more

Overall lack of pensions narrows retirement income gap between men and women

Overall lack of pensions narrows retirement income gap between men and women As today’s women shatter glass ceiling after glass ceiling they are narrowing the gap with men in all walks of life. However, when it comes to retirement income, the lack of adequate pension provision for both sexes is becoming an unfortunate equalizer. The absence of workplace pension plans has resulted in a kind of race to ...more

Quebec’s VRSP model aims at workers without a pension plan

Quebec’s VRSP model aims at workers without a pension plan Whether it’s NEST in the United Kingdom, Australia’s superannuation system, the KiwiSaver in New Zealand, or the new VRSP in Quebec, all have one thing in common: a realization that people need some sort of nudge to help them save for retirement. The DC-type plans have some key differences, but a core element is a requirement ...more

Mandatory aspect of ORPP a bold initiative, says Jo-Ann Hannah of Unifor

Mandatory aspect of ORPP a bold initiative, says Jo-Ann Hannah of Unifor Retirement anxiety is a real and tangible concern for millions of Canadians. More than 60 per cent don’t have an occupational pension plan, and for them the traditional notion of the ‘golden years’ is fast becoming unattainable. Efforts are being made to solve the riddle of inadequate retirement income, with solutions including the promised Ontario Retirement ...more

Stay focused on market volatility, says AIMCo’s Leo de Bever

Stay focused on market volatility, says AIMCo’s Leo de Bever As Canadian pension plans surge back towards surplus on the strength of stellar 2013 investment returns, cooler heads realize the good times won’t last forever and that funds need to continue to manage risk to keep the pension benefits flowing to retirees. Leo de Bever seems to fit comfortably into this group of cautious managers. The ...more

Anxious workers would trade pay for pension benefits

Anxious workers would trade pay for pension benefits Canadians are becoming increasingly anxious that their retirement years may not be as golden as once imagined, and they are willing to bargain with employers to achieve greater retirement security. A report by Towers Watson, the Global Benefits Attitude Survey, reveals Canadians are so concerned about their retirement readiness, they are willing to trade wages for ...more

Saskatchewan Healthcare Employees’ Pension Plan Applauds the Appointment of New CEO Alison McKay

Saskatchewan Healthcare Employees’ Pension Plan Applauds the Appointment of New CEO Alison McKay The Saskatchewan Healthcare Employees’ Pension Plan (SHEPP) is pleased to announce the appointment of Alison McKay as Chief Executive Officer (CEO). Alison was selected to replace former CEO Brad Garvey who left the organisation in April, 2013 due to a sudden and unexpected illness. “I’m looking forward to the challenges ahead as SHEPP builds on recent ...more

ARIA exclusive: Adequate retirement income good for people and economy: Murray Gold

ARIA exclusive: Adequate retirement income good for people and economy: Murray Gold Even though analysis shows that an expanded Canada Pension (CPP) would benefit younger Canadians more than it would boomers at or near retirement’s door, some opponents of higher contributions to pay for better benefits insist younger Canadians would be footing the bill for an older generation that hasn’t saved enough. It would take decades for higher ...more

Increased longevity fuels retirement-income anxiety

Increased longevity fuels retirement-income anxiety The good news is that Canadians are indeed living longer and generally healthier lives. The bad news is that where there is life there is expense and Canadians, notably those not in a defined benefit pension plan, have to come up with the money to fund those extra years. And as Ian Markham, Retirement Innovation Leader ...more

Data shows pension coverage a problem for the private sector

Data shows pension coverage a problem for the private sector Pension experts across the developed world agree that a retirement crisis driven by the lack of adequate retirement income will have serious consequences for individuals and economies. The range of dire outcomes from not having enough retirement income include an increase in the rates of senior poverty, people simply not having enough income to ever fully ...more

Savings program designed to get workers in the habit of preparing for retirement

Savings program designed to get workers in the habit of preparing for retirement It’s not a pension plan, but it does have at least one important component of one: payroll deduction. And one of the hopes for it is that it will at least get low-income people without much in the way of potential retirement money to begin saving. The myIRA concept Barrack Obama announced in his State of ...more

NB retirees continue to fight for their pensions

NB retirees continue to fight for their pensions Politicians have learned to tread lightly when it comes to retirees and their pensions. Former Prime Minister Brian Mulroney will likely attest to that, remembering his encounter with a senior citizen during a 1986 protest in Ottawa. Mulroney had made a decision to partly de-index pensions, a move that earned the ire of protester Solange Denis, ...more

Lack of CPP reform unfair to younger Canadians: Mathyssen

Lack of CPP reform unfair to younger Canadians: Mathyssen Intergenerational fairness is a term often used in the context of pension reform, with opponents of measures to improve retirement security often asking whether younger Canadians should be on the hook for boomers who haven’t been able to accumulate sufficient retirement income. The chatter is most often heard in relation to proposals to beef up Canada ...more

Time to deal with retirement insecurity: Rankin

Time to deal with retirement insecurity: Rankin As Murray Rankin moves across the country meeting with ordinary Canadians “of a certain age” about pressing issues of today and tomorrow, including the provision of adequate retirement income, he wishes he could see some younger faces in the crowds. Particularly on retirement issues, which many experts and observers predict will impact younger Canadians as much ...more

We’re All Invested – DB plans “part of the solution” in addressing retirement income crisis

We’re All Invested – DB plans “part of the solution” in addressing retirement income crisis A retirement income crisis awaits us if action is not taken on expanding workplace pension coverage in Ontario and across the country. That was one of the key messages delivered at “We’re All Invested,” an information session held March 17 at the MaRS Centre in Toronto. The event was sponsored by the Healthcare of Ontario Pension ...more

In The Headlines
UK’s auto enrol program reverses decades of decline – ARIA post

(Oct. 31, 2014) The number of Britons enrolled in occupational pension schemes is at the highest level since 1953, according to the latest Pension Trends report from the Office for National Statistics (ONS), reports Mindful Money. In 2013, enrolment in pension schemes reached 8.3 million, reversing a decline stretching from 1967 to 2012, according to the ...more

DB makes sense for high-net worth entrepreneurs – ARIA post

(Oct. 31, 2014) Operators of small businesses are among those with the most insecure retirement futures, as their focus tends to be on growing the business and not, necessarily, on putting money aside for retirement. However, the traditional form of retirement planning, the defined benefit model, may make sense for this entrepreneurial group, writes Winnie Sun ...more

Loss of DB plans fray the ties that bind – ARIA post

(Oct. 31, 2014) Job and loyalty were once connected terms in relation to staying put with one employer. Workers tended to stick with the job not only because they liked what they did, but also what they got, particularly the company pension plan. But as benefits like pensions, as well as concepts like full-time work, increasingly ...more

Retirement security can be found in an expanded CPP – ARIA post

(Oct. 31, 2014) It’s said there are only two certainties in life: death and taxes. Canadians may well add another, and that being worry over retirement prospects. A new report is once again highlighting the growing level of retirement insecurity in this country. Speaking through a letter to the editor in the Toronto Star, Paul Moist, ...more

Lack of adequate retirement income hits home – ARIA post

(Oct. 30, 2014) The lack of adequate retirement income is starting to hit home for Canadians, according to two new surveys, reports the Waterloo Chronicle. One survey finds that a majority of Canadians say they might not be able to retire according to plan, reports The Chronicle. The 2014 Sun Life Canadian Health Index finds that 69 ...more

PRPPs an RRSP program ‘with new coat of paint – ARIA post

(Oct. 30, 2014) Pension and retirement experts usually agree that for a retirement system to be effective, participation should be mandatory, as should employer/employee contributions. The problem with Pooled Registered Pension Plans (PRPPs), say critics, is that they aren’t mandatory and don’t require employer contributions. As such, critics say, they are little more than a glorified ...more

One in five Canadians expect to never retire – ARIA post

(Oct. 30, 2014) It wasn’t that long ago that the dream of early retirement was in fact a waking reality. Now, however, for most Canadians it remains in the realm of slumber. According to a survey by the Conference Board of Canada, not only has the dream of early retirement faded, for some Canadians, one in ...more

Hardship requests spike with major layoffs – ARIA post

(Oct. 30, 2014) Income saved for retirement shouldn’t be easily accessible for other reasons, cautions Nova Scotia’s superintendent of pensions. Dipping into those savings may only create financial problems for people who end up with meagre savings to sustain their retirement, Nancy MacNeil Smith told a legislative committee, reports www.metronews.ca. “I would hate to see an increase ...more

Employers say employees too optimistic about retirement – ARIA post

(Oct. 29, 2014) A Conference Board of Canada report indicates that more than 40 per cent of employers believe employees are too optimistic about when they will be able to retire, reports Benefits and Pensions Monitor. The report, An Employer’s Perspective: Retirement Savings and Preparedness, also found that 50 per cent of employers feel that their employees lack ...more

CPPIB likes the look of Brazilian opportunities – ARIA post

(Oct. 29, 2014) Opportunities in Brazilian commercial properties have caught the eye of the Canada Pension Plan Investment Board, which is investing US $396 million in the sector, reports the Globe and Mail. The move comes just a few months after the board opened an office in São Paulo. The board released a statement that said investments ...more

Time to revisit drawdown rules: Carrick – ARIA post

(Oct. 28, 2014) Writing about RRIF drawdown rules, Rob Carrick says it’s time to consider the fairness of forcing people to withdraw a large chunk of their retirement savings each year. However, arriving at a more fair system is a complicated process, he writes in the Globe and Mail. “On one hand, we need to consider the ...more

First generation DC retirees learning ‘on the fly’ – ARIA post

(Oct. 28, 2014) In a situation applicable to Canadians, Richard Rubin writes at www.bloomberg.com that having lots of cash socked away in a defined contribution scheme doesn’t guarantee future retirement security and comfort. Americans may have saved plenty of money and invested it wisely, but “some of your toughest decisions lie ahead,” he writes, adding not ...more

New UK DC rules ‘a tax windfall for the government’ – ARIA post

(Oct. 28, 2014) A lot of Britons are taking advantage of new rules that allows them to cash in all of their pension money, reports Employee Benefits. Doing so will leave more than 200,000 employees without retirement income accrued during their working years, leading some observers to suggest the government needs to rethink how to effectively regulate ...more

Nearly 20 per cent of survey respondents say they never plan to retire – ARIA post

(Oct. 28, 2014) The experts say they aren’t, and now Canadians are echoing the oft-stated opinion that they aren’t saving enough for retirement, reports CBC News. The report A Survey of Non-retirees and Retirees, analyzed the Conference Board of Canada, found that while 60 per cent of Canadians are putting some money aside for retirement, they know it’s ...more

Canadian funds ‘most pessimistic’ about future market volatility – ARIA post

(Oct. 27, 2014) Managers of Canadian pension funds are more cautious than are managers of pension funds in other countries, but have “a broader understanding of the global context,” writes Janet McFarland in the Globe and Mail. Canadian pension funds, she continues, “are the most pessimistic in the world about coming market upheavals, reporting in a ...more

Pay attention to debt and interest rates – ARIA post

(Oct. 27, 2014) With so many Canadians counting on the equity from their homes to finance their retirement, a housing market decline would imperil those plans according to the CEO of Sun Life Financial, writes Tara Perkins in the Globe and Mail. Dean Connor, writes Perkins, cautions that baby boomers’ fondness for debt and low interest rates makes ...more

Canadians are saving for retirement, but not enough – ARIA post

(Oct. 27, 2014) Canadians say they are putting money aside for retirement, just not enough for a secure and comfortable retirement, according to a new report from the Conference Board of Canada. Titled A Survey of Non-retirees and Retirees in Canada: Retirement Perspectives and Plans, the report summarizes a survey of Canadians’ attitudes towards retirement preparedness, conducted ...more

UK’s auto-enrol system faces crisis of missed deadlines – ARIA post

(Oct. 24, 2014) The United Kingdom’s auto-enrolment pension system could be headed for a crisis as small businesses “are leaving it too late” to meet enrolment deadlines, reports the Startup Donut. More than a million small businesses are in danger of missing enrolment deadlines, according to research for British pension insurer, NOW: Pensions. “And from June ...more

Millennials step up retirement savings – ARIA post

(Oct. 24, 2014) The future is becoming more of a priority for employees of all ages, according to new research into retirement thinking. A new report from Bank of America Merrill Lynch “reveals trends in the behaviors of financial benefit plan participants,”including millennials who are taking greater interest in their retirement prospects. Almost 40,000 members of this cohort, ...more

DB assets grow for fifth consecutive quarter – ARIA post

(Oct. 24, 2014) Despite market turmoil, Canada’s DB pension assets grew for the fifth consecutive quarter, reports Benefits Canada. According to the latest survey from RBC Investor & Treasury Services, DB plans returned 1.1 per cent during the year’s third quarter, “resulting in a year-to-date increase of 8.6 per cent,” reports Benefits Canada. However, plan liabilities have likely increased ...more