Despite recent uptick in U.S. commercial office real estate landlords defaulting on their loans, the chances of the same trend moving north of the border is low, says Jim Clayton, professor and Timothy R. Price chair in real estate and infrastructure with the Schulich School of Business at York University. Since the onset of the […]
U.S. state and municipal pension funds are on track to miss investment targets and are unlikely to see meaningful improvements in their unfunded liabilities or funded ratios in 2023, according to a new report by the Equable Institute. The report, which analyzed trends in benefits, cash flows, contributions, funding and investments at 225 of the […]
The funded position of a typical defined benefit pension plan increased on both a solvency and accounting basis during the month of June, according to the latest pension index from Telus Health. In June, the solvency of the average DB plan rose to 103.2 per cent, up from 101.4 per cent during the month of […]
As Thames Water Utilities Ltd. came under fire this month for its financial mismanagement and poor environmental record, the debacle highlights institutional investors’ responsibilities around due diligence and risk management. “Thames Water should act as a kind of warning,” says Andrew Clare, a professor and chair in asset management at the City, University of London’s […]
The Bank of Canada raised interest rates again on Wednesday and released new projections that suggest it will take longer to get inflation back to two per cent. The central bank hiked its key interest rate by a quarter of a percentage point, bringing it to five per cent. Forecasters were widely anticipating the central […]
Canadian defined benefit pension plans’ median solvency ratio increased in the second quarter of 2023, according to a new report by Mercer. The report, which looked at the performance of more than 500 Canadian DB plans in its database, found a rise from 116 per cent to 119 per cent during the quarter. Meanwhile, a similar report […]
High inflation and interest rates are having a real impact on people’s finances, according to Benefits Canada‘s 2023 CAP Member Survey, which found 76 per cent of capital accumulation plan members say inflation is negatively impacting their financial situation, while 59 per cent say the same about interest rates. For many people, the day-to-day cost […]
Since 2016, millennials have made up a larger share of the working population than baby boomers — and today, one in three Canadians of working age is a millennial, according to Charmaine Alexander, senior advisor in disability management at Desjardins Insurance, speaking during Benefits Canada’s 2023 Benefits & Pension Summit in June. A recent survey […]
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 […]
While U.S. workers believe they’ll need roughly $1.27 million in savings to retire comfortably, employees have, on average, just $89,300 in retirement savings, according to a new survey by Northwestern Mutual. The survey, which polled more than 2,700 employees, found 52 per cent said they expect to be financially prepared for retirement when the time […]