The Canadian Association of Pension Supervisory Authorities has published an updated version of its guideline No. 8 for defined contribution plans, focusing on three main areas: the payout phase, plan sponsor/administrator responsibilities and advice. Introduced in March 2014, Guideline No. 8 aims to spell out the rights and responsibilities of DC plan administrators, providers and members. It […]
In a showdown between tax-free savings accounts and registered retirement savings plans, Canadians have a clear favourite: more than half said they prefer to put their money in a TFSA, according to a new survey by the Bank of Montreal (BMO). The problem is almost one-third (32 per cent) don’t know the difference between the two savings plans. Among millennials, […]
From banks to insurers to the federal government, retirement calculators are a regular feature of the financial planning landscape. At their most basic, they use data, such as age, income and current assets, to provide recommendations for how an individual can aim to meet their retirement goals. But can these tools truly provide a reliable […]
No risk, no reward. Like many things in life, investing inertia and fear are common, but they come with a cost. In the investment world, risk has a specific meaning: the probability of losses relative to the expected return on an investment. The key in this definition are the words ‘expected return.’ When it comes […]
The introduction of more flexible annuity options for capital accumulation plans and reform to prescription drug coverage are among the recommendations by the Canadian Life and Health Insurance Association for the 2019 federal budget. In a letter to the Ministry of Finance, the CLHIA highlighted the increasing need for Canadian retirees to convert some or all of […]
Despite market turmoil, Canadians are saving more in their registered retirement savings plans, led by strong growth among millennials, according to the Bank of Montreal’s annual RRSP study. Nationally, the average amount held in RRSPs is $101,155 — a 21 per cent increase from $83,635 in 2016. Millennials account for the greatest increase in amounts held, at 87 per cent […]
Canada should be considering the feasibility of a portable benefits plan for employees across the country, according to the Public Policy Forum. A portable benefits plan would fill the needs of transient employees engaged in part-time or temporary work who have limited or no access to benefits and pensions, noted the report. It would also provide […]
There are major differences between what defined contribution plan sponsors are trying to communicate to members and what members hear, according to a new study by Invesco. “We believe a disconnect remains between what plan sponsors say and what participants hear,” said John Galateria, managing director and head of North America institutionals at Invesco, in a press […]
iA Financial Group is introducing a virtual assistant to help personalize group benefits and pension plan member experience. The virtual assistant can be accessed using Google Assistant on a cell phone, tablet or via Google Home. It can calculate how much a group registered retirement savings plan member should contribute or estimate the amount saved when they retire, […]
Belonging to an employer-sponsored pension plan can help boost returns on workers’ outside investments, according to new research by Statistics Canada. Although previous research examined how membership in a pension can affect how much employees save, Statistics Canada sought to understand the potential effects on generated returns. To that end, it analyzed the relationship between pension coverage […]