Some good news that we may have overlooked because of the Pandemic
In 2021
Defined Pension funds came through the pandemic in surprisingly good health,
with solvency funding levels at new highs thanks to rebounding equity markets
and high long-term bond yields.
The
pandemic has enhanced the case for DB pensions among an increasingly mobile
workforce and the employers looking to attract and retain them.
The
pandemic has proved a net positive for the popularity of Defined Benefit Plans,
with the void left by distracted employers more than filled by fresh expressions
of interest from organizations looking to satisfy employees newly confined to
home offices. Employers want to put
their money where their mouth is to retain employees because the mobile
workforce can now work for anyone, Employers are turning the corner. They’re
all saying employees are their most important asset, so having an ineffective
pension system or none at all doesn’t really resonate
Canadians are
now establishing a good financial foundation right now — setting out financial
goals and saving for them. We are taking a step in the right direction to make
real financial progress. If this momentum continues, Canada will be poised for a
stronger second half of the year.
Despite the
financial challenges experienced by Canadians over the course of the coronavirus
pandemic, 40 percent said they’ve continued to save for retirement, according
to a new survey by life insurance provider Policy Me Corp.
More than
half (54 percent) of survey respondents said they’re adding to their emergency
funds, while 48 percent are paying down debt and 45 percent are making
regular contributions to their savings. On average, Canadians put 21 percent
of their income into savings and investments.
In
addition, 67 percent said they feel in control of their finances and 65 percent described themselves as “financially resilient.” In 2021, survey
respondents who described themselves as “financially resilient” were more
likely to have paid off their mortgage (89 percent), made regular
contributions to a registered education savings plan (84 percent) or a
registered retirement savings plan or tax-free savings account (78 percent),
consulted with a financial advisor (75 percent) and made a will or updated
their end-of-life plans (72 percent).
However, there is still widespread concern, 42 percent said they felt more financially stressed in 2021 compared to the previous year and households with children (47 percent) were more likely to experience financial stress than those without children (39 percent). Half (51 percent) said they had to pull money from their savings or investments in order to afford the unforeseen expense
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