Oct. 28: BEST FROM THE BLOGOSPHERE
October 28, 2024
Canada’s retirement system ranked 13th in the world
New retirement rankings from Natixis Investment Managers show Canada’s retirement system is ranked 13th best in the world, reports Wealth Professional.
Canada was 14th in 2023, the publication reports, citing data from The Global Retirement Index produced by Natixis annually.
“Globally, the study shows a stabilizing retirement outlook but it notes that individuals are feeling the pressure as more come to the realization that they are on their own when it comes to funding income later in life,” the article notes.
“Canada’s metrics are solid in areas such as the health sub-index which is boosted by life expectancy, quality of life, and finances – although it’s highlighted that the Bank of Canada has been less successful than some peers on making progress with inflation,” the article continues.
South of the border, the U.S. retirement system has fallen to 22nd place in the Index’s ranking of 44 countries. There, “the wellbeing metric has been impacted by rising unemployment.” On the plus side, the data found that the U.S. gross domestic product was showing the highest rate of growth.
A related Natixis study – the Global Survey of Individual Investors – found that “27 per cent of respondents said that even if they saved $1 million, they still couldn’t afford to retire,” Wealth Professional reports. Worse, that result includes people (24 per cent) who have already saved $1 million!
“As individuals increasingly take charge of their retirement planning amidst these challenges, financial service providers must become more proactive in supporting them,” states Liana Magner, Executive Vice President and Head of Retirement and Institutional in the U.S. for Natixis Investment Managers, in the article. “To prevent future crises, it’s crucial to offer personalized solutions that address both the current economic landscape and individuals’ specific retirement needs, including access to both public and private markets.”
We frequently point out that the benefits offered to the average Canadian via the Canada Pension Plan (CPP) and through Old Age Security (OAS) are quite modest.
This year, the maximum gross income a 65-year-old can get from CPP is $1,364.60, according to the federal government’s own website. That same 65-year old would receive, at the most, $713.34. So just over two grand, maximum, before taxes.
If you belong to a workplace pension plan or retirement program, you’ll get extra income on top of that. Be sure you are signed up and contributing to the max.
If you don’t have a workplace pension plan, the Saskatchewan Pension Plan may be just the ticket for you as an individual, or as a business owner thinking about offering your team a pension program. In either case, once contributions are coming in, SPP does all the investing and administration work, issuing annual statements, contribution slips and T-slips for retirees. A great, all-Canadian resource for individuals and organizations to save for retirement!
Get SPP working for you!
Join the Wealthcare Revolution – follow SPP on Facebook!
Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.
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