Despite tastes for beaver tails and poutine, Canadians are living longer than ever before. And if you’re an employer with a DB pension plan, it probably means that you’ll be paying pensions to your retirees for longer than you expect.
The thinking for plan sponsors over the last decade has been to reduce risk, reduce liabilities, get out of DB and move to a DC pension model. But a pure DC plan isn’t the answer to the overarching pension problem—and neither is DB, argued Yvan Legris, global CEO, consulting, with Aon Hewitt, at a recent Toronto Board of Trade event.
At the Colleges of Applied Arts and Technology (CAAT) Pension Plan (No. 29), those charged with overseeing the retirement savings of nearly 34,000 plan members from participating Ontario colleges aim to respond to changes before they happen. And they try to be as transparent as possible with members when changes to the plan are deemed necessary.
UK's Akzo Nobel signs a £1.4-billion longevity insurance contract with Swiss Re.
Governments around the globe will need to gradually increase their retirement ages in order to keep their pension systems sustainable, according to a new report from the Organisation for Economic Co-operation and Development (OECD).
There's no question longevity risk has become increasingly front of mind for pension plans. But it looks like our neighbours across the pond may have a leg up in hedging against the risk.
Here’s a new use for your smartphone, even if it is a tad uncomfortable to think about. Towers Watson’s U.K. office has released a new app that allows users to estimate their own life expectancy.
UK trustees concerned about market volatility but are under-hedged against longevity, investment and inflation.
Successful retirement planning includes an assessment of many risks, including how much annual retirement income will be needed, whether an individual will be able to retire at his or her desired age and whether the individual’s savings will generate sufficient investment returns—both before and after retirement—to achieve his or her retirement goals.
The International Monetary Fund is warning about the global risk of aging populations in its April 2012 Global Financial Stability Report.