The market volume of annuity purchases by Canadian defined benefit pension plan sponsors reached an estimated $2.1 billion in the third quarter of 2024, a small decline from $2.5 billion in the previous quarter, according to a new report by Telus Health. It noted some insurers are showing a strong appetite and offer competitive pricing […]
Recent challenges to the 60/40 balanced portfolio rule shouldn’t sway institutional investors away from the strategy, said Steve Foerster, professor of finance at Western University’s Ivey Business School, during the Canadian Investment Review’s 2023 Investment Innovation Conference in November. “Regardless of what’s happening now, we don’t want to confuse strategic asset allocation, which is what […]
More than half (53 per cent) of Canadian retirees say they’re receiving, or will receive, less than $50,000 in annual retirement income from their employer-sponsored pension plan, according to a survey by the Ontario Securities Commission. It found just 19 per cent of retirees with employer-sponsored pension plans said they expect to receive between $50,000 […]
Canadian annuity prices have an asymmetrical response to changing interest rates, making it more expensive to de-risk defined benefit pension plans shortly after rates rise, according to new research. “In Canada, annuity providers are prompt when it comes to raising prices when interest rates go down and slower when interest rates go up,” says Mark […]
Capital accumulation plan member outcomes saw modest increases in the third quarter, due to high annuity rates that shielded members from modest investment market declines, according to a new report by Eckler Ltd. It found a typical male member retiring at the end of September achieved a gross income replacement ratio of 60.3 per cent […]
Alcoa Corp. is de-risking roughly US$1 billion in U.S. defined benefit pension obligations and assets with an annuity transfer. The group annuity contracts will be executed by two subsidiaries of Athene Holding Ltd., which will assume payments for roughly 4,400 participants in November, according to a press release. Read: Looking under the hood of jumbo […]
By underestimating life expectancy, employees risk running out of money in retirement, according to a new survey by analytics firm Club Vita. The survey, which polled 3,000 respondents in Canada, the U.K. and the U.S., found on average, people underestimated their life expectancy by 4.7 years. Women underestimated their longevity by an average of 6.1 […]
With 10 million Canadian baby boomers entering retirement, dynamic pension pools could help seniors turn their accumulated savings into low-cost lifetime pension income, according to a new report by Ryerson University’s National Institute on Ageing and the Global Risk Institute. According to the report, dynamic pension pools can help Canadians optimize their expected lifetime retirement […]
The old adage “good things come to those who wait” is especially true of Canada and Quebec Pension Plan benefits. A $1,000 monthly CPP/QPP benefit in today’s dollars at age 60 increases to $1,112.50 if the individual delays until age 61 and to $2,218.75 if they wait until age 70, equivalent to more than $100,000 […]
While a re-elected Liberal government may introduce some measures to protect private pension plan members, it’s unlikely to pursue super-priority similar to what was proposed by the Conservative Party and the New Democratic Party on the federal election trail, according to a pension lawyer. “I think that there may be some measures to address the […]