The last actuarial report on the Canada Pension Plan (CPP) estimated that 38% of Canadians in 2010 started receiving their CPP at age 60. Another 38% or so started their pension at 65. The remaining 24% started their CPP at other ages, mainly between 61 and 64. To someone new to Canada, the “normal” retirement age would not be at all obvious. Yet ask any Canadian and he or she will tell you that normal retirement means age 65.
The newly re-introduced Pooled Retirement Pension Plan (PRPP) may be touted as the cure-all for all Canada’s flailing retirement savings system, but a rather unimpressed advice industry regards it as just another tool.
Since pension plan members tend to pay much lower fees than mutual fund investors due to economies of scale, a PRPP should offer the same cost advantage to make them a truly viable option to DB and DC plans. Can ETFs help?
Why markets can't save the pension promise.
Beware of the risks and unintended consequences.
The recession means that some employees and plan sponsors will need to adjust their retirement expectations. Will they just have to wait it out, or are there other options? It’s the primary rule of pensions and, arguably, the most widely cited principle in pension plan management: pension plans are built to last. They are designed […]
Other Brieflies this week:| MON | TUE | WED | THU | FRI | Canadians will contribute $20 billion to tax-free savings accounts (TFSAs) next year and the market will mushroom to $115 billion by 2013, says a CIBC World Markets report. “The 2008 federal budget gave birth to arguably the most dramatic change in […]
If the new Tax-Free Savings Account (TFSA) is the highlight of the budget, the question is, What do you do with it? The merits of the account are by now well understood from an individual point of view, as its flexibility allows employees at all income levels to use it in different ways. But […]
It is nice to be able to report on a legal development that is good news for plan sponsors. The federal government’s 2005 budget gave the Canadian pension industry a proposal to repeal the Foreign Property Rule (FPR)applicable to tax-deferred retirement plans, through future amendments to the Income Tax Act(ITA). The elimination of the current […]