The maximum pensionable earnings under the Canada Pension Plan for 2021 are increasing to $61,600, from $58,700 in 2020. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada, according to a press release from the Canada Revenue Agency. Contributors who earn more than $61,600 in […]
The average gross income replacement ratio for a typical defined contribution plan member was up at the end of September, according to Eckler Ltd.’s latest capital accumulation plan income tracker. It found a typical male DC plan member retiring at age 65 at the end of month saw their gross income replacement ratio returned to 56 per […]
While working Canadians expect to retire, on average, at age 62, they’ll require $878,000 in retirement savings, more than twice the amount of current retirees, according to a new study by Mackenzie Investments. It found 45 per cent of respondents who are still working said they plan to continue doing so in some capacity, compared […]
With Canadian employees feeling the toll the coronavirus pandemic is taking on the economy, should policy-makers facilitate the use of workplace emergency savings plans? “We know from data that 28 per cent of Canadian households who are financially impacted by COVID in August were drawing down on their [tax-free savings accounts] and [registered retirement savings […]
Alberta’s Local Authorities Pension Plan is cancelling its coordination option, citing regret and confusion from plan members who mistakenly accessed the feature without fully understanding the financial implications. According to a statement by the LAPP, coordination will be discontinued for members who start their pension on or after Jan. 1, 2021. It noted the option’s elimination will […]
After nine months of uncertainty in the financial markets and with no end in sight to the coronavirus pandemic, more and more Canadian workers are worrying about life after retirement, according to a new survey by Manulife Investment Management. It found financial woes are taking a toll on workers, with a 16 per cent rise […]
In its 2020 budget submission to the Ontario government, the Canadian Life and Health Insurance Association is highlighting a lack of access to affordable prescription drugs and inflexible pension plans. With respect to prescription drugs, the CLHIA noted it supports the federal Patented Medicine Prices Review Board reforms, which were introduced on Friday. “It is crucial that the […]
While pension plan sponsors and the government have roles to play when it comes to retirement, it’s increasingly up to individual employees to ensure they have a solid retirement plan, said Jack Mintz, the president’s fellow at the University of Calgary’s school of public policy. During a virtual roundtable hosted by the Association of Canadian Pension […]
Many Canadians are seeing the impact of the ongoing coronavirus pandemic on their retirement plans and ability to save, according to a new survey by the Canadian Imperial Bank of Commerce. In the survey, 40 per cent of respondents expressed concerns about the pandemic’s effects on their savings, with 23 per cent unable to contribute […]
Canada’s retirement income system scored ninth place for the second year in a row, securing a “B” rating in spite of uncertainty in the markets as a result of the coronavirus pandemic. The annual global pension index by Mercer and the CFA Institute noted the pandemic’s effects on the global pension fund markets aren’t only widespread […]