Defined contribution plan sponsors have to stay aware of plan design developments to improve their benefits offerings for their specific workforces, according to a new report by Callan. As workplace demographics shift, it’s important for plan sponsors to make sure their DC plan features are keeping up with those changes to ensure the benefits they’re providing are most effective […]
With the private sector’s move from defined benefit to defined contribution pension plans and rising life expectancies, the issue of retirement decumulation is increasing in importance. Decumulation deals with converting retirement savings into income that must be managed over the rest of the retiree’s lifetime. It can be a challenge for Canadians who don’t have a significant […]
On the same day Keith Dixon began working at the University of Victoria, the campus gained another new addition: its combination pension plan. Introduced in July 1968, the plan is fairly unique in the world of Canadian pensions. It operates on a defined contribution basis, with the university and plan members each contributing. But when […]
Whether operating in Canada or the United States, defined contribution plan sponsors are facing the same challenges around demographics, plan design and their employees’ retirement readiness. On the demographics front, more baby boomers are retiring and taking their pension balances with them. As DC plans lose members, plan sponsors may see a rise in costs […]
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 […]
The Canadian Association of Pension Supervisory Authorities has outlined its priorities for April 2019 to March 2022 in its new strategic plan, which included initiatives like focusing on defined contribution plan decumulation and cyber security. Jason Vary, president at Actuarial Solutions Inc., notes while all the identified priorities were worthwhile, some are more important than […]
The Canadian Association of Pension Supervisory Authorities has outlined its priorities for April 2019 to March 2022 in its new strategic plan, which included initiatives like focusing on defined contribution plan decumulation and cyber security. Jason Vary, president at Actuarial Solutions Inc., notes while all the identified priorities were worthwhile, some are more important than […]
While the process has been slow to date, it’s clear the migration to defined contribution pension plans will continue in Canada. Defined benefit assets comprised about 47 per cent of total financial wealth in 2007, compared to assets in DC plans and other group retirement savings accounts, which made up about 38 per cent, said Colin Ripsman, president […]
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 […]
As millennials look to their employers to integrate their career, education and leisure, this creates challenges for the pension industry, said Erica Hall, assistant vice-president of client relations and group retirement solutions at Manulife, speaking at Benefits Canada’s 2019 DC Plan Summit in Banff, Alta. in February. “We are very linear — they enrol, accumulate and […]