The average income replacement ratio of capital accumulation plans in the second quarter of 2017 has remained stagnant since the start of the year, according to Eckler Ltd.’s latest capital accumulation plan income tracker. The report noted that decreasing investment returns during the quarter weren’t significant enough to change the income replacement ratio, which remains […]
The Ontario government’s announcement in its April budget that it will be addressing the regulatory framework related to defined contribution pension plans has done little to quell the debate about whether modernization and expansion of the existing rules is necessary or desirable. Those in favour say that, as defined contribution plans continue to grow in […]
The Canadian Life and Health Insurance Association is recommending a number of ways the federal government can help ensure Canadians’ retirement income security in its submission for the 2018 federal budget. With more Canadians moving into capital accumulation plans, people need to have better options available to help secure their retirement, wrote the organization, noting there’s […]
In June, the European Commission proposed a new voluntary pension aimed at helping individuals who move around the continent to save for retirement. If passed, employers, banks and insurance companies will be able to offer the portable pan-European pension to European citizens. The European Insurance and Occupational Pensions Authority will regulate the pension. “All in […]
There’s little doubt that working Canadians want a secure source of retirement income. The challenge for the pension industry is how to deliver the desired retirement income in a sustainable manner. In April 2017, the Canadian Public Pension Leadership Council published the results of a survey that provided key takeaways that will be useful to governments, policy-makers […]
KPMG LLP has run its first series of retirement education sessions through in-person workshops, one-on-one meetings and a version on Skype for employees at its smaller locations. The firm introduced the sessions in May after a 2015 pilot program with a small group of employees found people wanted to receive more education about their retirement savings. […]
Sun Life Assurance Co. of Canada is introducing what it says is a “great bridge to decumulation” by launching new target-date funds that focus defined contribution pension plan members on their goal for retirement income. The funds, which will be available for group savings plans in 2018, will require plan members to set a retirement income target […]
Most target-date funds aren’t serving employees well, argues a paper published earlier this month in the Social Science Research Network. While target-date funds are an easy option for employees who aren’t comfortable with making investment decisions, the funds don’t consider employees’ desired retirement incomes or how well the portfolio fares over time, writes researchers Peter A. Forsyth, […]
The gross income replacement level of capital accumulation plans has remained steady for both males and females over the previous quarter, while increasing investment returns were offset by a slight decrease in annuity rates, according to Eckler Ltd.’s capital accumulation plan income tracker. The tracker assumes the member made annual contributions at a rate of […]
The Ontario government is moving to allow for variable benefits from defined contribution pension plans, according to the 2017 budget tabled yesterday. “I think it’s positive the Ontario government gets that [addressing] decumulation is a rising need for capital accumulation plans,” says Joe Nunes, president of Actuarial Solutions Inc. But he cautions that the proposed solution, […]