What does the “new world order” mean for individual investors? Colin Ripsman, vice-president with Phillips, Hager & North, delved into that question at the firm’s pension trustee education seminar last week in Toronto.
Canadian pension plans ended the year barely in positive territory, thanks to an impromptu October market rally that helped lift retirement assets by 4.2% in the fourth quarter, according to a survey by RBC Dexia Investor Services.
Canadians have doubts about their private and government-funded pension plans, according to a survey carried out as part of the National Bank of Canada’s Retirement Index.
A radical overhaul may be in order for the state pensions of the world’s most developed countries. There is already talk of scaling back benefits, but to do this across the board would be tragic. A better approach would be to make all state-backed pensions means-tested, rather than universal.
DC and RSP benefits are completely a function of contributions and the actual investment result for each employee. Employees are responsible for the outcome, not employers, and the pension amount is unknown until retirement. High costs, poor investment decision-making and lack of scale are documented problems with DC plans, which have generally experienced returns 1% lower than DB plans over time, according to a recent Towers Watson study.
The federal government this morning introduced the much-anticipated Pooled Registered Pension Plans (PRPP) Act to address concerns over declining pension coverage for Canadians.
Savvy advisors have taken the time to understand Individual Pension Plans, seeing them as a value-added service for existing and prospective clients recognizing they may be the new frontier in the asset accumulation cycle.
Business owners face some tough choices. They could sell their business outright to fund retirement, but if they want to keep it in the family, that could prove problematic. Enter the advisor who understands the Individual Pension Plan (IPP).
Canadians are saving too much for retirement, according to the report issued by C.D. Howe. You read that right. Not all Canadians, of course—just those who have access to defined benefit pension plans.
The market volatility that swept through global equity markets in the third quarter had a severe impact on pension plans, according to RBC Dexia Investor Services.