for more exclusive content, see categories in sidebar
Retired steelworker knows the value of guaranteed pension income

Retired steelworker knows the value of guaranteed pension income Just as steel is the backbone of modern society, the defined benefit pension plan is the structure that best supports the retirement dreams and aspirations of working Canadians, DB advocates maintain. Those advocates include John Pittman, a retired Hamilton steelworker whose DB pension not only sees him through, as he says, but helps to support the ...more

Research shows the value of adequate retirement income

Research shows the value of adequate retirement income A new report from the Employee Benefit Research Institute (ERBI) not only shows the value of adequate retirement income, but also the necessity of using data to understand the perils of not having that income and what to do about it, says the author of A look at the End-of-Life Financial Situation in America. Without a ...more

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

In The Headlines
Retirees question move to shared risk, say ROI proves it wasn’t needed – ARIA post

(June 29, 2015) A group of retired New Brunswick civil servants say that the 14.18 per cent return announced by their pension fund shows that a shift to a shared risk model wasn’t needed, reports CBC News. The retirees formed Pension Coalition NB to fight in court to overturn the previous government’s unilateral shift to a shared ...more

Seniors and debt: no longer an odd couple – ARIA post

(June 29, 2015) Once, a common requirement of retirement was that debt, or at least the lion’s share of it, be retired before people set off for their golden years. Now, as Sophia Harris writes for CBC News, carrying debt into the traditional retirement years is becoming increasingly prevalent, as are related bankruptcies. Harris reports that according ...more

Canadians eye retirement, worry about being able to afford it – ARIA pension

(June 29, 2015) Franklin Templeton Investments’ annual survey shows that Canadians appear to be generally optimistic about their retirement prospects. “The survey explores income strategies and expectations for retirement. We continue to learn more about individual behaviours and the impact that advisors can have in helping people prepare for what’s next,” the report states. As might be ...more

Gen Xers worry more about retirement income than Boomers – ARIA post

(June 26, 2015) Worrying about retirement is becoming a common pastime, but some of us are worrying more than others, writes Anne Fisher for www.fortune.com. According to a new study, Gen Xers have it over Boomers on the retirement worrying front, writes Fisher, who adds that if the Great Recession had any benefit at all, it’s ...more

Which workers are at risk? – ARIA post

(June 26, 2015) When considering who in Canada is at risk of not having adequate retirement income, the answer is “a large number of workers,” writes pension expert Robert Brown for the Huffington Post. More than 65 per cent of Canadian workers do not have an occupational retirement plan, with that number dwindling to 24 per ...more

Nursing ranks decline for first time in two decades – ARIA post

(June 25, 2015) In a development not seen in two decades, more regulated nurses left the profession than entered it, reports the Canadian Institute for Health Information. Fewer nurses, including registered nurses, licensed practical nurses, and registered psychiatric nurses, “applied for registration, while more chose not to renew their registration due to factors such as retirement, ...more

Cuts will impact ‘middle Australia,’ says MP – ARIA post

(June 25, 2015) An Australian MP is saying that analysis shows that pension cuts will hurt the most vulnerable, contradicting government claims that the cuts will only impact those who are the most well off. The cuts, she says, “are a direct attack on middle Australia.” “Over the long run, there are more people affected on below ...more

Presidential hopeful works to reverse bill that impacts pensions – ARIA post

(June 25, 2015) American presidential hopeful Sen. Bernie Sanders is working to reverse a proposal passed last year “that could result in deep pension cuts for retirees and workers in multi-employer pension plans,” reports www.enewspf.com. The pensions of about 10 million Americans will by protected by his plan, says the senator from Vermont. “Hard-working retirees should not ever have ...more

NB pension corporation reports 14.18 per cent ROI – ARIA post

(June 24, 2015) The New Brunswick Investment Management Corporation (NBIMC) reports that its gross nominal return on investment for the fiscal year ending March 31 was 14.18 per cent. That’s for total assets under management. The corporation is trustee and investment manager for the Provincial Court Judges’ pension fund, the investment manager for the Public Service Shared Risk ...more

Quebec pondering older retirement age – ARIA post

(June 23, 2015) Currently, Quebecers can begin receiving public pension payments at 60. However, that may change based on reports the government is considering pushing back the retirement age, according to CBC News. Increasing longevity is being named as the main reason for an increased retirement age, reports CBC. It’s also being reported that the Quebec government ...more

Workers depend on CAP, managing risk advised – ARIA post

(June 23, 2015) With the number of Canadians retiring or about to, plan sponsors need to understand how to manage risks to avoid lawsuits, reports Benefits and Pensions Monitor. Retirees will “depend on their workplace capital accumulation plan (CAP) as a primary source of retirement income,” reports The Monitor, meaning “it is becoming increasingly important for ...more

CARP aims to expand in Peterborough region – ARIA post

(June 23, 2015) CARP, with 350,000 members across Canada, advocates for social and economic justice, including adequate retirement income, and is growing its presence in Peterborough and region, writes Paul Rellinger for www.mykawartha.com. The organization’s Peterborough chapter is seeing a resurgence, expanding its reach to include the County of Peterborough, reports Rellinger. CARP is active in promoting ...more

Are Canadian funds the ‘new masters of the universe?’ – ARIA post

(June 22, 2015) When considering Canada’s economic stability, observers need to consider two main reasons, writes Ben Marlow for The Telegram. Canada, he writes, has experienced relatively economic stability compared to the United States. Since 1790, America has experienced 16 banking crises, while Canada has experienced none – “not even during the Great Depression.” “How has Canada ...more

Quebec tables bill to amend pension plans act – ARIA post

(June 19, 2015) Quebec has tabled legislation, Bill 57, to amend the private sector pension plans registered in that province, writes Julien Ranger for Pensions & Benefits Law. The legislation follows two years of consultation with stakeholders on the D’Amours Report, released in 2013. The report, writes Ranger, “provided recommendations on how to improve Quebec’s retirement income ...more

Canadians want a defined retirement benefit, until death – ARIA post

(June 19, 2015) When it comes to pension reform, it’s pretty clear what Canadians want, writes pension expert Robert Brown for the Montreal Gazette. They want “a system that can be trusted, the lowest cost possible, high rates of investment returns (within a range of prudent safety), transparency and a governing process that puts the interests ...more

Pact sustains teachers’ pensions, parties say – ARIA post

(June 19, 2015) The government of Newfoundland and Labrador has promised to contribute more than $1.8 billion over the next 30 years to ensure stability of the plan, the government announced in a release. It’s part of an agreement between the government and the Newfoundland and Labrador Teachers’ Association (NLTA) to sustain the plan. “The agreement we ...more

Millennials save earlier for retirement – ARIA post

(June 17, 2015) According to a new survey from the Transamerica Center for Retirement Studies, millennials are heeding warnings about not being prepared for retirement, and are stashing money away for their golden years, reports CNN. About 67 per cent of 20-somethings have saved money for retirement, an impressive feat given other draws on their money, including ...more

OMERS, AIMCo team up to buy risk consultancy firm – ARIA post

(June 17, 2015) OMERS and AIMCo are involved in a $1.7 billion deal to obtain risk consultancy Environmental Resources Management from buyout firm Charterhouse, reports the Financial Times. The deal demonstrates how the two Canadian funds “are increasing their clout in Europe,” writes Joseph Cotterill. The sale was done without the usual process of Charterhouse running an ...more

DB a better fit for military – ARIA post

(June 17, 2015) A traditional retirement plan of the defined benefit type is a better fit for American military personnel, writes Mayor T.H. Bonham for the Military Times. He writes in response to proposals to shift the pension plan for the military from a DB format to a “profit-sharing” contribution “that burdens them with investment risk.” ...more

Canada scores low on global retirement readiness poll – ARIA POST

(June 16, 2015) A recent survey, reports Pensions & Investments (PI), ranks global retirement readiness, with Canada scoring almost 50 per cent on the overall low readiness measure. The poll looks at a number of factors: personal responsibility, level of awareness, financial capability/understanding, retirement planning, financial preparedness and income replacement, reports PI. It considered employees and retirees ...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

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

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

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