annuity – Benefits Canada.com

Canadian pension risk transfer sales decrease to $2.1BN in Q3 2024: report

bmcgovern — Thu, 07 Nov 2024 16:00:54 +0000

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 […]

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2023 Investment Innovation Conference: Is the 60/40 balanced portfolio strategy still viable for institutional investors?

bmcgovern — Thu, 18 Jan 2024 12:51:21 +0000

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 […]

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Half of Canadian retirees receiving less than $50K per year from employer-sponsored pension plan: survey

lbailey — Tue, 16 Jan 2024 20:00:48 +0000

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 […]

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Canadian annuity prices show asymmetrical response to interest rate shifts: experts

Gideon Scanlon — Tue, 04 Jul 2023 13:00:32 +0000

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 […]

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Report finds CAP member outcomes rising due to high annuity rates

bwolfe — Tue, 15 Nov 2022 14:00:02 +0000

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 […]

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Alcoa entering $1BN annuity transfer for U.S. DB pensions

bwolfe — Mon, 08 Aug 2022 19:00:51 +0000

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 […]

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Longevity pessimism poses risks to retirement planning: survey

bwolfe — Thu, 05 May 2022 13:00:06 +0000

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 […]

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Dynamic pension pools a viable decumulation option for Canadians: report

bwolfe — Tue, 16 Nov 2021 14:00:45 +0000

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 […]

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Helping employees understand the benefits of delaying CPP/QPP

bwolfe — Fri, 15 Oct 2021 12:54:56 +0000

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 […]

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Liberals unlikely to pursue super-priority for pension plan members: expert

bwolfe — Fri, 24 Sep 2021 13:00:40 +0000

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 […]

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