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Lack of retirement income drives seniors to ‘payer of last resort’

Lack of retirement income drives seniors to ‘payer of last resort’ Advocates for adequate retirement income maintain the traditional defined benefit pension approach is best suited for providing retirees with a reliable stream of income that not only benefits them, but also the communities in which they live. DB income is guaranteed for life, and that income has social and economic benefits which include dignity in retirement ...more

Access to CPP structure could see ORPP as a ‘virtual’ plan, reducing startup costs

Access to CPP structure could see ORPP as a ‘virtual’ plan, reducing startup costs When it comes to the provision of adequate retirement income, Canada’s ‘maple revolutionaries’ do it best, says a leading proponent of Ontario’s new pension plan to tackle what is being called a retirement crisis at or near the doorstep. In a March 2012 story that ran under the leafy reference to Canada’s big public sector pension ...more

Retirement crisis getting worse, expanding access to DB a solution

Retirement crisis getting worse, expanding access to DB a solution Whispers of a pending retirement crisis have turned to loud warnings about the social and economic calamities that wait in the wake of inadequate retirement income. As boomers reach or approach the traditional retirement years, their lack of preparedness is the subject of increasingly intense focus on challenges and solutions, as well as their anxiety about ...more

NEST numbers show the value of auto enrolment

NEST numbers show the value of auto enrolment The search is on for a solution to inadequate retirement income, a quest stretching across much of the developed world as countries confront the economic and social ills of aging populations not having enough income to sustain them through their post-working years. Although the solutions on the table vary, the problems are essentially the same: people ...more

Being a responsible investor pays off

Being a responsible investor pays off Responsible investing through ESG standards is not only good for the environment, it’s also good for business, based on the Healthcare of Ontario Pension Plan’s 17.7 per cent 2014 return on investments. In fulfilling its fiduciary responsibility to deliver the best financial results for its members, HOOPP integrates environmental, social, governance (ESG) factors into its investment ...more

Retirement crisis hit after a slow build of more than 30 years

Retirement crisis hit after a slow build of more than 30 years To the casual observer the retirement crisis might seem as if it arrived unannounced, suddenly knocking on the door to steal the golden years of millions of workers and their families. However, those in the know will tell you no crisis more than 30 years in the making just shows up one day. Rather, it was ...more

Public pension model meets today’s labour realities: CCPA’s Block

Public pension model meets today’s labour realities: CCPA’s Block Building a comprehensive retirement income solution around a public model is a practical response to current employment and labour mobility realities, says economist Sheila Block. For many Canadians, the cradle-to-grave type of employment that one’s grandfather might have enjoyed has morphed into a pattern of full-time, part-time, contract and temporary work. Today’s workers ride a wave ...more

Quebec coalition plans for the long game against Bill 3

Quebec coalition plans for the long game against Bill 3 Mark Ranger recalls that day in September when thousands of Quebec municipal workers took to the streets of Montreal to protest Bill 3. The spirit of that day lives on, he says, despite the passing of the bill that unilaterally diminishes retirement benefits. “For the first time you had all the municipal workers in the streets ...more

ORPP addresses retirement income anxieties: Mitzie Hunter

ORPP addresses retirement income anxieties: Mitzie Hunter The provision of adequate retirement income is more than an academic and policy debate, it’s a real-life topic of conversation and concern around the dinner tables of Ontario, says Mitzie Hunter, the minister in charge of ushering in the province’s new pension plan. When talking to Ontarians, Hunter, the province’s associate minister of finance, finds that ...more

In Conversation with Jim Tomkins, Chair of the SHEPP Board of Trustees

Jim Tomkins is the Chair of the Saskatchewan Healthcare Employees’ Pension Plan (SHEPP) Board of Trustees for 2014. As chair he serves the needs of over 52,000 Plan members working in the healthcare industry across Saskatchewan. Jim is a long standing member of the SHEPP Board of Trustees, and we recently caught up with him ...more

Retirees mobilize to maintain promised benefits

Retirees mobilize to maintain promised benefits Retirees probably have better things to do than congregate on the corner of Queen and Bay at 5 p.m. on a workday, but on an early fall day earlier this year that’s just what Jeanie Campbell and others were doing. They weren’t there to see the sights of the big city. They were there to register ...more

The lost wisdom of grandparents found again in auto enrol

The lost wisdom of grandparents found again in auto enrol Canadians are increasingly being reminded of the importance of saving for retirement. Yet, despite such efforts, savings remain dismally low, driving what pension experts are calling a looming crisis of inadequate retirement income. The verdict seems to be in that left to their own devices, Canadians won’t voluntarily put money aside for retirement. Certainly immediate demands ...more

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

In The Headlines
Survey finds low level of retirement readiness in the UK – ARIA post

(May 20, 2015) According to new research by Aegon, the level of retirement preparedness in the United Kingdom is woefully low, reports Employee Benefits. The data shows that only about seven per cent (less than one in 10) Britons are on track to have a sustainable retirement. The report, the third of its kind, also revealed that ...more

HOOPP, CPPIB among winners at IP Real Estate Global Awards – ARIA post

(May 20, 2015) The Healthcare of Ontario Pension Plan (HOOPP) was recognized with the Global Sustainability Award at the IP Real Estate Global Awards 2015 in Copenhagen. The plan was runner-up in this category for the previous two years. Also recognized was partner Crown Estate, which won the award with HOOPP. The Canada Pension Plan Investment Board (CPPIB) repeated ...more

CPPIB buys into German shopping centre operator – ARIA post

(May 19, 2015) The Canada Pension Plan Investment Board is reported to have signed an agreement to purchase a 46.1 per cent share of a German shopping centre operator. The board is reported to be buying the share from French real estate group Unibail-Rodamco, for mfi AG at a cost of $450 million, reports Reuters. “As a long-term investor, ...more

Court ruling sides with workers – ARIA post

(May 19, 2015) Sponsors of DC-type plans are being cautioned that they have an ongoing fiduciary duty over employee retirement benefits, and that they could find themselves in legal hot water if their schemes fail to deliver sufficient retirement income. Now, the Supreme Court of the United States has said workers can sue “their 401(k) plans for ...more

Oxford seeks high-end Parisian assets – ARIA post

(May 15, 2015) The real estate arm of the Ontario Municipal Employees Retirement System (OMERS) is looking for some high-end retail properties in Paris in which to invest, reports Bloomberg News. Oxford Properties Group is in the market for such assets “as demand increases for brands such as Hermes and Breitling,” reports Bloomberg. The foray follows ...more

Decline in DB coverage hinders economic growth – ARIA post

(May 15, 2015) Another report is linking the shift of DB to DC to a widening of the income gap, and reduced economic prospects. According to a report from the National Conference on Public Employee Retirement Systems (NCPERS), the shift to defined contribution is doing a lot more overall damage than just reducing retirement income. It’s impacting ...more

DC starts with a flawed assumption – ARIA post

(May 15, 2015) The older you are, the more likely it is that you will retire with a pension, writes Jack Marrion for NAFA Annuity Outlook. For workers in their 50s, 21 per cent will get a pension. If in their 40s, the number drops to 15 per cent. Back in 1989, you could add 20 ...more

Employees seek employer engagement in retirement planning – ARIA post

(May 14, 2015) A new report from Northern Trust shows a disconnect between employees and their employers when it comes to retirement planning. By an overwhelmingly factor, employees want their employers to be more active in helping them prepare for retirement, but plan sponsors “voice reluctance to doing so,” according to the new study from Northern Trust. Calling ...more

Employees leave matching employer contributions on the table – ARIA post

(May 14, 2015) Despite improvement in retirement plan participation rates, employees are still missing out on retirement dollars by not maxing out their contributions, writes Jennifer Barrett for CNBC. According to a report report by Financial Engines, a financial advisory firm, one in four American employees are leaving employer matching dollars on the table by not ...more

Union says new B.C. pension act will allow switch from DC to TB – ARIA post

(May 14, 2015) British Columbia’s new Pension Benefits Act will allow the province’s Government and Service Employees’ Union to convert its defined contribution plan to a target benefit model, pooling investment and longevity risk, according to the union’s director. “We are happy to see this update to pension benefit standards, in particular, the amendment which provides ...more

Modest changes could save Halifax Water pension plan: union – ARIA post

(May 13, 2015) Halifax Water employes are threatening to strike over proposed measures that would impact their pension plan, reports CTV News Atlantic. As many as two-thirds of the utility’s employees could be off the job in protest of options presented by the employer, with the union saying future employees will pay a steep price for ...more

Work factors into Canadians’ retirement plans – ARIA post

(May 13, 2015) It wasn’t that long ago that promises of ‘freedom 55′ drove visions of checking out of work for the last time, and enjoying a long and well-earned retirement of comfort and security. Well, today’s retirement realities are noticeably different, writes Lisa Wright for the Toronto Star. Referencing a new study from HSBC Bank, ...more

Wealthier Aussies set to lose pension payments as government redistributes to those less well off – ARIA post

(May 12, 2015) Almost 91,000 wealthy Australian retirees stand to lose their part-pension payments under a government plan to redistribute more income to less well-off Australians, reports Perth Now. Beginning in 2017, “the thresholds for pension eligibility will change so that those with between $823,000 and $1.15 million in assets, not including the family home, will no ...more

Working longer a hope, not a plan – ARIA post

(May 12, 2015) When it comes to retirement, many Canadian boomers have “unrealistic expectations,” writes Wayne Rothe for Retire Happy. Some want to retire early, but don’t have nearly enough socked away to be able to do that, he writes, while others plan on remaining to the job to get more time to save, or to ...more

Federal Liberals will look to pension plans for infrastructure funds – ARIA post

(May 12, 2015) If they form the next government, the federal Liberals will encourage large pension plans to invest in Canadian infrastructure projects, writes Bill Curry in the Globe and Mail. The approach will be a plank in the party’s platform, forming a “key part of the Liberal Party’s cities agenda,” he continues. It’s expected that Liberal ...more

Changes prompt Illinois teachers to retire early – ARIA post

(May 11, 2015) Changes to the Illinois teachers’ pension plan may have provoked the “unintended consequences” of a mass exodus of educators, reports WPSD Local. Since a 2013 “teacher pension reform bill” came into effect, nearly 3,000 teachers have retired, “many of them because they’re worried about losing some of their pension,” writes Holden Kurwicki. The flow of ...more

Aging of workforce linked to shift from DB to DC – ARIA post

(May 11, 2015) There are a number of reasons why older people decide to stay in the workforce, but they can generally be filed into two categories: wanting to and needing to keep working. As reported by the Dickinson Press, the trend is also driven by people staying healthier longer, but whatever the reason, employers need ...more

Decline of DB widens income gap – ARIA post

(May 11, 2015) Another report is linking the shift of DB to DC to a widening of the income gap, and reduced economic prospects, reports Pensions & Investments (PI). According to a report from the National Conference on Public Employee Retirement Systems (NCPERS), the shift to defined contribution is doing a lot more overall damage than just ...more

NCPERS creates ethical code for providers – ARIA post

(May 7, 2015) The National Conference on Public Employee Retirement Systems (NCPERS) has created a new set of voluntary ethical guidelines for members to follow. The guidelines will ask public pension plans to request service providers adhere “to a new set of ethical guidelines designed to protect the interests of plan participants and beneficiaries.” NCPERS says it “created ...more

Editorial misses the mark: Kolivakis – ARIA post

(May 7, 2015) Reacting to an editorial in the National Post that criticizes the Ontario Retirement Pension Plan (ORPP), Leo Kolivakis of Pension Pulse says that the paper raises some good points, “but completely bungles up most others.” Among other items, the National Post editorial “completely ignores the benefits of Canada’s top ten to the overall ...more


Defined contribution plans not addressing income adequacy

Writing in The Daily Journal, USA Today contributor Duncan Black warns that Social Security in the U.S. needs to be expanded, because defined contribution 401(k) plans are not delivering adequate retirement incomes.
“The move away from traditional defined benefit plans to defined contribution 401(k)-style plans … has not succeeded in providing for a secure retirement,” he writes.… … Read More

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For many, vacation a bigger priority than retirement – ARIA post

While fewer and fewer Canadians have the security of a workplace pension – and must be self-reliant for retirement income – it appears we are a nation of spenders rather than savers.
Writing for the Huffington Post blog, Deborah Nixon notes that Canadians, like others around the world, appear to have rejected the idea of saving for retirement and just “spend spend spend.”
She cites a recent international survey by HSBC of 15,000 people, age 25 and older, that found “48 per cent have never saved for retirement,” and that 43 per cent of those asked “would save for a vacation before retirement.”
But, she adds, they know saving for the future is important – a TD Canada Trust survey found that “70 per cent of Gen Xers (1965-1981) feel that they are not saving enough money and 56 per cent of boomers (1946-1964) are worried about not having enough money in their later years.”
The HSBC research showed that 84 per cent experienced “a life event that affected their ability to save,” and 26 per cent said they had been “impacted by the economic downturn.” Low interest rates for things like mortgages are encouraging people to buy houses, she writes, and people are spending more.“As consumers, we are very skilled at rationalizing what we do, including our impulse purchases,” she notes.… … Read More

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High debt, tighter rules making Canadians leery about buying homes – ARIA post

We continually hear how the high level of household debt in Canada is preventing people from voluntarily saving for retirement via RRSPs and TFSAs.
A report by Jennifer Kwan for Yahoo! Finance Canada suggests that high debt may also be impacting Canadians decisions to buy new homes.… … Read More

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Strong results for Ontario Teachers’ Pension Plan – ARIA post

The Ontario Teachers’ Pension Plan posted returns of 13 per cent in 2012, Bloomberg News reports.
The plan, “Canada’s third-biggest retirement-fund manager,” saw gains in real estate, private equity, and stocks, the news service reports.… … Read More

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