All News

The alone stage of retirement: A risk exacerbated by gender

There is a growing proportion of baby boomer women who will end up living alone at older ages with limited incomes, and for whom health and daily activity issues will become more burdensome. It is this middle stage and into the late stage of retirement that many women will also find themselves alone and having to cope with both financial and non-financial issues – a period referred to as “the alone stage of retirement”.

Living well in retirement is the goal of all Canadians, but how prepared are we?

In the 2020 Retirement Risk Survey, conducted in partnership with Ipsos, the CIA asked Canadians a series of provocative questions about their retirement and long-term planning. The survey focused on how well Canadians understood longevity and life in retirement, and how accurate their expectations are around being disabled in retirement, needing long-term care, and more.

COVID-19 shorts Canadians’ plans for retirement

With the pandemic in its fourth wave, the Canadian retirement landscape remains a vulnerable sector. The findings of the Retirement Risk Survey, though concerning, illustrate an undeniable fact that, more than ever, Canadians need support and information about how to manage their retirement and long-term care needs in old age.

Outliving one’s income in retirement

Advances in modern medicine mean people are living longer, and while a longer life is an important gain, it can present a challenge to income security. We asked Canadians to consider how well their retirement plans factor in the possibility of living longer and what it might mean for their quality of life.

Financial insecurity is a growing reality for Canadians in retirement

Despite being associated with a more comfortable, confident retirement, more than half of Canadians do not have a financial plan for their retirement, which results in most retired Canadians having less income in retirement than they did when working. Compared to 80% of individuals who do have a plan and expect to live comfortably in retirement, this is a discrepancy that may indicate an earlier need for intervention.

Reimagining Pension Solvency Funding: Join the conversation

In Canada, pension promises made to employees by employers are not guaranteed by insurance contracts. What happens when an employer goes out of business and a pension plan becomes wound up? Scenarios like this often run the risk that the assets set aside to deliver the promised pensions may not be sufficient. The question begs: Is there is a better approach to addressing underfunded pension plans? We explore some potential answers in our paper “Protecting Pensioners of Traditional Defined Benefit Plans: A New Approach to Solvency Funding and Benefit Reductions on Plan Wind-up”, newly released as part of the CIA insight statement series.

DC plans in the decumulation phase: an opportunity to be seized

More and more pension plan participants are entering the decumulation phase of their lives, with a significant proportion of their retirement assets in a DC plan or savings plan such as an RRSP. Is there a way they can continue to reap the benefits of pooling assets for this second phase of their financial life? Some DC plan sponsors are currently addressing the issue and considering adopting solutions. These actions can improve their plans, often with no additional costs, and provide them with a new tool for managing their workforce. Current legislative changes also favour this thinking.

How actuaries can help manage longevity risk

Longevity risk is the danger that we outlive our retirement savings. This involves the ensuing challenge to maintain the standard of living that we are accustomed to or afford the ever-increasing health care and retirement housing costs. Can actuaries help the public avoid this issue?

Genesis of CAAT’s DBplus: Nobis Cura Futuri – Can we do more?

Although workplaces are changing, the need for valuable, secure pensions is not. After a quarter-century of troubling trends, the not-for-profit CAAT pension plan decided to take a leadership role to deliver a better future for Canadians, employers, and society. To do so it needed to remove the barriers to joint success.

Canada most affected by demographic impact of pension plans compared to UK and US

Consensus on the potential impact of population aging on asset values varies from the benign to the extreme. Despite little consensus, the effect of population aging on investment returns remains a hot button topic within academic literature.