Higher long-term bond yields driven by rising interest rates are lowering the cost of annuity purchases for defined benefit pension plans, says Mary Kate Archibald, a principal at Eckler Ltd. Since January, the cost of an annuity purchase has decreased by between 10 and 15 per cent, as long-term bond yields increased from 1.7 to […]
The Association of Canadian Pension Management is providing feedback on the Accounting Standards Board’s proposed amendments to the Chartered Professional Accountants of Canada’s handbook, including changes to sections covering defined benefit pension plan obligations and amalgamations. In an open letter responding to the board’s proposal, Ric Marrero, chief executive officer of the ACPM, said when […]
The Canadian pension risk transfer market registered about $6.6 billion in annuity sales in the second half of 2021, far exceeding the activity of any previous calendar year, according to a new report by Eckler Ltd. It found total annual sales of about $7.7 billion were generated in 2021, with more than $200 million in business […]
Pension and retirement plan members in Saskatchewan can now designate beneficiaries through electronic means. The provincial government recently passed a series of amendments regarding the electronic handling of legal matters. Bill 56 specifically allows individuals to name beneficiaries electronically for certain types of plans including an employee pension, retirement, welfare or profit-sharing fund or plan, […]
A third (33 per cent) of recently retired Canadians said they retired sooner than they planned and 30 per cent of pre-retirees intend to change their retirement date because of the coronavirus pandemic, according to a new survey by RBC Insurance. It found Canadians are still largely relying on traditional retirement savings tools, such as […]
More than half (61 per cent) of U.S. employees nearing retirement age believe low interest rates combined with rising inflation will make it difficult to create a retirement income stream that will last their lifetimes, according to a new survey by Global Atlantic Financial Group. It also found a quarter (24 per cent) of survey […]
This month marks the two-year anniversary of the World Health Organization declaring the coronavirus a global pandemic. In some ways, we’ve come a long way since then, but in others, we’re hovering close to where it all started. One thing is for sure: the pandemic continues to create a through line in Benefits Canada’s content […]
The second year of the coronavirus pandemic offered defined benefit pension plan sponsors a reprieve from the chaos sown in financial markets during its first year. “A lot of pension plans ended up roughly where they started in 2020, but it was a very bumpy road,” says Gavin Benjamin, a retirement and financial solutions partner […]
A third (34 per cent) of U.S. retirees who took a lump sum from their defined contribution pension plan in retirement depleted that sum within an average of five years, according to a new survey by MetLife Inc. “There can be significant drawbacks for retirees when taking a lump sum,” said Melissa Moore, senior vice-president […]
As a new year dawns, our attention turns to what’s ahead, the following are a few of my predictions for trends in the world of pensions in 2022. Volatility We’re entering the year in an environment of considerable economic and financial market uncertainty. Supply chain problems, elevated price inflation and labour shortages in certain industries […]