Inflation must be taken into account when designing both plan sponsor and government retirement programs because, over time, it will undermine purchasing power. In terms of recruiting and retaining employees, workplace retirement plans are important, but they also represent a significant cost for employers. Inflation-adjusted government pension programs can help lower these costs. But plan sponsors and […]
Defined contribution plan sponsors should consider Canada’s public pension system when designing their plans, according to a panel comparing the Canadian system to the ones in Denmark, the Netherlands and Sweden at Benefits Canada’s 2019 DC Plan Summit in Banff, Alta. in February. Canada’s three-pillar system is comprised of old-age security and the guaranteed income […]
Employers could play a role in encouraging low-income Canadians to save more for retirement by offering group tax-free savings accounts, according to a report by the Institute for Research on Public Policy. The report found that, since their introduction in 2009, TFSAs have become nearly as popular as registered retirement savings plans, and could even go […]
The federal government has increased the old-age security benefit by 1.2 per cent as of July 1. The change means a single senior receiving OAS and the guaranteed income supplement with no other income may receive $1,728.84 more today than in November 2015. The government also noted that restoring the age of eligibility for OAS and GIS […]
The upcoming enhancements to the Canada Pension Plan will increase Canadians’ total CPP benefits by about 44 per cent by 2070, according to a new report by the Canadian Institute of Actuaries and the Society of Actuaries. The study, authored by Bonnie-Jeanne MacDonald, senior research fellow at Ryerson University’s National Institute on Ageing and resident scholar at Eckler Ltd., used […]
Almost half (45 per cent) of Canadians are confident they’ll be able to maintain their standard of living in retirement to a life expectancy of 85, according to a new study by market research firm Mathew Greenwald & Associates Inc. and Cannex Financial Exchanges Ltd. The survey, which questioned more than 1,000 Canadians aged 55 to 75 with […]
Expand the Canada Pension Plan replacement rate to 50 per cent of earnings. Cap annual contributions to registered retirement savings plans at $22,000. Establish a public agency to administer terminated pension plans. Create a single-payer pharmacare plan for all of Canada. These are just a few of the suggestions put forth by the Canadian Centre for Policy […]
The government is introducing automatic enrolment for the guaranteed income supplement benefit beginning this month. The automatic enrolment means that, each month, up to 17,000 Canadian seniors who turn 64 on or after Dec. 1, 2017, will be selected to be automatically enrolled for the GIS benefit without having to complete an application, according to the […]
The large number of Canadians who fear the Canada Pension Plan won’t be around when they retire reflects a misplaced belief, said Canada Pension Plan Investment Board president and chief executive officer Mark Machin on Tuesday. Machin discussed the sustainability of the national pension plan during his keynote speech at a 2017 symposium held in Toronto by Advocis, the […]
The federal government’s advisory council on economic growth has released its second wave of recommendations that include extending the age of eligibility for the Canada Pension Plan, establishing a reasonable process for requesting flexible working arrangements and creating a universal subsidized childcare program to get more women into the workforce. The advisory council believes allowing CPP and […]