Nearly two years into the coronavirus pandemic and the uncertainties brought on by the Omicron variant, markets held up in the last three months of 2021 with capital accumulation plan member outcomes continuing to improve.
According to Eckler Ltd.’s latest CAP income tracker, a typical male plan member retiring at age 65 at the end of 2021 achieved a gross income replacement ratio of 59.9 per cent, while a female member achieved 58.2 per cent.
The report also highlighted that retirement outcomes are expected to improve through potential movement by pension regulators. The Office of the Superintendent of Financial Institutions’ and the Financial Services Regulatory Authority of Ontario’s defined contribution technical advisory committee recently set out six recommendations to the Canadian Association of Pension Supervisory Authority’s capital accumulation plan guidelines.
Eckler said it expects draft updates to the CAP guidelines, including guidance on the decumulation of CAPs, to be released in the coming weeks.