A retiree whose retirement savings are primarily in a registered savings plan, such as a life income fund or registered retirement income fund, already faces a number of risks and challenges during their retirement years. But a significant financial market correction highlights one of these challenges — how much income should be withdrawn from the […]
While many Canadians can’t wait to start drawing down Canada Pension Plan benefits when they turn 65, it’s important to consider whether that’s the right move Bonnie-Jeanne MacDonald, director of financial security research at Ryerson University’s National Institute on Ageing Delaying CPP is the safest, most inexpensive approach to receiving more secure retirement income. Yet […]
The Financial Services Regulatory Authority of Ontario has confirmed it will permit a suspension of employer contributions to defined contribution pension plans on a temporary basis. However, any change to either employer or employee contributions can only be on a go-forward basis and must be supported by an amendment to the plan text, said the […]
A new report by the C.D. Howe Institute is urging the federal government to suspend taxes on registered retirement savings plan withdrawals during the coronavirus pandemic. The report said the current financial assistance measures are an excellent start, but may still leave certain individuals and households with immediate cash-flow problems. Indeed, even for those to whom government assistance […]
While a flurry of capital accumulation plan member activity might indicate their anxiety amid an economic crisis, not many are choosing to make changes to their investments right now. In meeting with record keepers, Rosalind Gilbert, associate partner in the retirement and investment consulting group at Aon, says plan sponsors are more eager than usual for […]
George & Bell Consulting Inc. is calling on the federal government to allow non-punitive withdrawals from registered retirement savings plans for Canadians to meet their short-term financial needs. Currently, Canadians can withdraw assets from their RRSPs at any time, but the treatment on withdrawal is generally punitive, with withdrawals resulting in personal income tax on […]
In the midst of an unusual or unsettling situation, such as the coronavirus pandemic, pension plan sponsors should remember that both defined benefit and capital accumulation plan arrangements are intended to be managed for the long term. The negative impact of the coronavirus on global economies and on businesses is a concern, particularly with respect to […]
With many people around the world facing layoffs due to business shutdowns caused by the coronavirus, financial stress is pervasive. In Australia, the government is allowing individuals affected by coronavirus to access up to $10,000 of their superannuation savings tax-free in both 2019-20 and 2020-21, subject to restrictions, including that they must be unemployed or […]
Canadians, like many around the world, have watched from the sidelines as interest rates have plummeted and the markets have dropped significantly over the past couple of weeks, with a devastating toll on both personal retirement savings and employer-sponsored pension and other retirement savings plans. Existing industry concerns about the adequacy of retirement savings in […]
As many employers are forced to temporarily lay off employees due to the impact of the coronavirus pandemic, what does that mean for the provision of benefits and pension plans? Kim Siddall, vice-president and local practice leader at Aon, says eliminating benefits isn’t the route most employers would voluntarily choose, but she acknowledges that where […]