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Lack of adequate retirement income push people to GIS – ARIA post

Lack of adequate retirement income push people to GIS – ARIA post Some traditions are just too good to let go. And if they are discarded or replaced with a lesser brand for the sake of convenience, vested interests, or perception, ramifications often follow. Proponents of ditching the traditional defined benefit pension model in favour of a defined contribution savings scheme might want to consider the results of ...more

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

In The Headlines
Smaller plans struggle with ‘outdated’ investment structure – ARIA post

(Nov. 21, 2014) A new paper from Russell Investments Canada Ltd. advises that many of Canada’s smaller pension plans are stuck using “outdated investing methods,” reports Benefits Canada. The paper points to a “clear gap in resources and investment process” between smaller plans with less than $10 billion in assets, and the country’s “mega” plans, “which ...more

DC trustees struggle with compliance rules – ARIA post

(Nov. 21, 2014) Trustees of British defined contribution plans are missing the mark in terms of expectations for “governance, administration and communications,” reports The Actuary. Reporting on an Towers Watson analysis of regulatory compliance levels, The Actuary said that while trustees are meeting guidelines for a number of areas, “many trustees are failing to meet guidelines for ...more

DB plans rebound after decade to turmoil – ARIA post

(Nov. 21, 2014) After a decade of economic turmoil, multi-employer defined benefit plans are bouncing back, reports Benefits and Pensions Monitor. Reporting on new data from the International Foundation of Employee Benefit Plans (IFEBP) and Horizon Actuarial Services, LLC, The Monitor says that investment returns were unstable over the past decade due to a number of pressures, including ...more

Global investors balk at ‘excessive’ fees – ARIA post

(Nov. 21, 2014) Private-equity managers took it on the chin from pension fund managers “from the Netherlands to Canada” for charging excessive fees, writes Simon Clark in the Washington Post. Th managers, looking for new investment potential “lambasted” the private-equity executives at a meeting in Paris, writes Clark. Ruulke Bagijn, chief investment officer for private markets at ...more

Grandparents pessimistic about grandchildren’s future: MROO survey – ARIA post

Today’s Youth Can Expect to Live – and Work – Longer than Current Retirees  Today’s young people will live longer, healthier lives than their grandparents, but will spend more of it on the job, whether they like it or not, according to survey feedback from members of the Municipal Retirees Organization Ontario (MROO). Almost three-quarters (73 per ...more

New England strike highlights plight of declining middle class – ARIA post

(Nov. 20, 2014) A strike in New England is a “reflection of a broader national conflict between economic competitiveness and survival of the middle class,” writes the editorial board of BDN Maine. Stretching into its second month, the strike of 2,000 FairPoint Communications employees is about saving middle-class jobs which are disappearing, and along with them the ...more

Canadian funds eye U.S. and Europe for real estate – ARIA post

(Nov. 19, 2014) Whether Canadian snowbirds should buy or rent in the sunny south was a topic of conversation at an event “billed as a dinner for 40 of the top real estate executives in Canada and some of their American counterparts,” writes Garry Marr in the Financial Post. The crowd, however, was buzzing “at the ...more

Study shows women ignore pensions in divorce settlements – ARIA post

(Nov. 19, 2014) When divorcing, almost 85 per cent of British women aren’t taking pensions into account as part of their settlement, reports The Telegraph. That omission is leaving many of them in financial hardship when the retirement years come along, according to research by pension provider Scottish Widows, reports The Telegraph. On average, women save less than ...more

Seniors will tax health and retirement systems – ARIA post

(Nov. 19, 2014) The key to saving Canada’s healthcare system is in rethinking the way that system cares for seniors, writes Elizabeth Payne in the Ottawa Citizen. Dr. Chris Simpson, president of the Canadian Medical Association, said this week that a national seniors strategy aimed at moving seniors with chronic illnesses from acute-care hospitals to institutions ...more

Rise in appetite for risk mirrors ability to manage it – ARIA post

(Nov. 18, 2014) Riskier assets are becoming more interesting to pension fund managers as they search for higher returns, driven by the security of their improving ability to select the best managers, writes David Oakley in the Financial Post, and posted to Leo Kolivakis’ blog, Pension Pulse. The quest for higher  returns is causing fund managers to ...more

Planning eases challenge of offering retirement options – ARIA post

(Nov. 18, 2014) The benefits to employers of offering employees a retirement plan, particularly a defined benefit pension, are well known, and include recruitment and retention value. Although most “business owners and HR champions of independent Canadian businesses” would know the benefits of having a group retirement plan for employees, many small businesses face a number ...more

Indexing provisions a benefit, rules tribunal – ARIA post

(Nov. 18, 2014) Indexing provisions is now a pension benefit, following a decision by Ontario’s Financial Services Tribunal, reports Benefits and Pensions Monitor. The ruling applies to the case of the CAMI Automotive Inc. Pension Plan for Salaried Employees, whose pension plan was amended in 1993 to provide an indexed pension for retirees, reports The Monitor. “However, ...more

Britons’ retirement expectations don’t match savings reality – ARIA post

(Nov. 18, 2014) A majority of Britons are facing rather bleak retirement prospects according to new research from pension provider Aegon, reports www.citywire.co.uk. Only about six per cent of the United Kingdom population have saved enough for a comfortable retirement, revealed Aegon following a survey of 4,000 people which “found a huge disparity between the income ...more

Activist hedge funds seen as change agents – ARIA post

(Nov. 17, 2014) Activist hedge funds were once “reviled as a threat to the status quo in executive suites and clubby corporate boardrooms,” writes Theresa Tedesco in the Financial Post, but now they are seen as change agents. As such, they are gaining “clout and board seats in blue-chip companies: Canadian Pacific Railway, Microsoft Corp. and ...more

Deflation haunts the West – ARIA post

(Nov. 17, 2014) Deflation, writes John Cochrane, professor of finance at the University of Chicago Booth School of Business, for an op-ed that ran in the Wall Street Journal, and was posted to Leo Kolivakis’ blog Pension Pulse, is a “specter (that) now haunts the Western world.” European inflation is running at .3 per cent, and U.S. inflation is ...more

Take new requirement seriously, sponsors told – ARIA post

(Nov. 17, 2014) When it comes to Ontario’s new requirement to include a include a plan’s position on ESG in its SIP&P, sponsors should take it seriously, says Randy Bauslaugh, head of the pensions, benefits, and executive compensation group at McCarthy Tétrault, reports Benefits and Pensions Monitor. Addressing the fourth Annual Pensions Seminar, ‘Pension Plans in Transition‒ Change is the ...more

CPPIB invests in British development – ARIA post

(Nov. 17, 2014) The Canada Pension Plan Investment Board is taking a stake in the city centre of Leeds, England, reports the Globe and Mail. The board is “boosting its British real estate holdings through a joint venture with a British firm,” The Globe reports, involving the purchase of 50 per cent of a commercial, retail and ...more

Retirement prospect dire for a third of Americans – ARIA post

(Nov. 13, 2014) A third of Americans aren’t contributing anything to their retirement savings, according to a new report from Wells Fargo, writes Gary Halbert at Value Walk. The survey was conducted among Americans age 25 to 75, with a median household income of $63,000. “Among all those surveyed, 34 per cent are not currently contributing anything ...more

Money woes keep Canadians awake at night – ARIA post

(Nov. 13, 2014) Money worries keeping you up at night? If so, you aren’t alone with a new survey revealing that financial woes are the leading cause of stress for Canadian, reports Benefits Canada. Money, according to a survey from the Planning Standards Council, causes more stress than work, personal health and relationships, reports Benefits Canada. That financial stress “is ...more

CPPIB portfolio delivers ‘over the long term’ – ARIA post

(Nov. 13, 2014) The most recent fiscal quarter, ending Sept. 30, saw the Canada Pension Plan Investment Board (CPPIB) post a 3.4-per-cent return on its investments, and a $7.6-billion growth in assets, writes Bertrand Marotte in the Globe and Mail. The fund’s assets increased to $234.4 billion from $226.8 billion in the previous quarter, writes Marotte. The return is “in ...more