K96.3FM Radio Spot
Jim Flaherty, the Finance Minister for Canada announced a proposed "Pooled Retirement Pension Plan" yesturday.
They will pool contributions from many individual companies and workers, allowing them to take advantage of large retirement funds. Argues it would make it easier and more affordable for small employers to offer pension plans and give self-employed the option to participate in a pension plan. The alternative is to beef up CPP. The max monthly CPP benefit at age 65 is $934.17 per month.
The Government is concerned individuals will come up short in retirement. Some emerging trends are increased debt levels, less savings and longevity affecting retirement. About 2 months ago I was at a presentation by Moshe Melevski on retirement planning and he made some interesting observations. 82% of workers employed by public employers have defined benefit pension plans while only 28% of workers employed by private businesses have defined benefit plans. Of the top 60 companies in Canada only 16 left have a defined benefit pension plan. Claude Lamoureux, former CEO of Ont Teachers Pension Plan said "If this trend continues the only Canadaians covered by defined benefit pension plans will be politicians, government employees and members of parliament...
The reason why pensions are so important in retirement is because they are the main positive factor contributing to your replacement of after tax income when you retire.
They will pool contributions from many individual companies and workers, allowing them to take advantage of large retirement funds. Argues it would make it easier and more affordable for small employers to offer pension plans and give self-employed the option to participate in a pension plan. The alternative is to beef up CPP. The max monthly CPP benefit at age 65 is $934.17 per month.
The Government is concerned individuals will come up short in retirement. Some emerging trends are increased debt levels, less savings and longevity affecting retirement. About 2 months ago I was at a presentation by Moshe Melevski on retirement planning and he made some interesting observations. 82% of workers employed by public employers have defined benefit pension plans while only 28% of workers employed by private businesses have defined benefit plans. Of the top 60 companies in Canada only 16 left have a defined benefit pension plan. Claude Lamoureux, former CEO of Ont Teachers Pension Plan said "If this trend continues the only Canadaians covered by defined benefit pension plans will be politicians, government employees and members of parliament...
The reason why pensions are so important in retirement is because they are the main positive factor contributing to your replacement of after tax income when you retire.
posted by David Allard at
7:23 AM
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