Though more than half of Canadian capital accumulation plan members feel financially prepared for retirement, there’s a distinct difference across generations. Given their proximity to retirement, it’s no surprise baby boomers (69 per cent) are the age cohort most likely to agree they feel prepared, compared to 59 per cent of generation X and 41 […]
A third of employees don’t expect to ever reach full retirement, according to a new survey by Aon. The survey, which polled 1,000 Canadians at all stages of their careers, found more employees are postponing retirement due to financial concerns. The majority of participants said they don’t expect to fully retire all at once, with only 34 per cent […]
Looks aren’t a solid basis on which to form a long-term relationship and neither is the surface-level appearance of a target-date fund. “In a perfect world, we would like our members to have a long-term relationship with a target-date fund we’re offering,” said Zaheed Jiwani, a principal at Eckler Ltd., at Benefits Canada‘s 2019 Benefits […]
The fourth quarter of 2018 saw the largest decline since 2011 in a retiring member’s ability to create a secure retirement income, according to a report by Eckler Ltd. At the end of 2018, replacement income for women fell to 55 per cent and for men to 56 per cent. The fourth-quarter decline is a result of steep […]
While educational content is a key component of financial wellness programs, they must also be measurable and embrace technology to help defined contribution plan members move easily from ambition to action, according a new report by the SPARK Institute and Cerulli Associates. The report, which combined feedback from 26 U.S. record keepers representing $5.9 trillion in […]
With the industry focused on retirement readiness and more defined contribution plan members on glide paths, it’s increasingly important for plan sponsors to choose default investment funds suited to the present and future. Fortunately, these funds have been shifting away from their conservative roots. Money market funds, for instance, were once a common default in […]
In determining which savings options to offer employees, a key component is understanding the workforce and its goals, as well as communicating the offering in a way they can understand, according to a panel on engaging workers in defined contribution pensions at Benefits Canada’s 2019 DC Plan Summit in Banff, Alta. in February. Thak Bhola, […]
Employers could play a role in encouraging low-income Canadians to save more for retirement by offering group tax-free savings accounts, according to a report by the Institute for Research on Public Policy. The report found that, since their introduction in 2009, TFSAs have become nearly as popular as registered retirement savings plans, and could even go […]
A new paper from Ryerson University’s National Institute of Ageing is calling for the creation of workplace tax-free pension plans to better support Canadians’ financial security in retirement. Under the current workplace registered pension plan model, noted the research, lower to middle income Canadians are essentially discouraged from saving for retirement due to the potential financial […]
Workers over the age of 55 could make up more than a quarter of Canada’s labour force by 2036, according to new labour force predictions from Statistics Canada. Despite this trend, the agency predicted the country’s workforce participation rate will continue to decrease from its peak of 68 per cent in 2008 to 63 per […]