SM Blog: » see older posts
- Wednesday January 18, 2012
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The Rookie
Taking on a role in a field that you have no experience in can be a daunting task; you don’t want to disappoint your new employer and you need to step outside of your comfort zone. - » Read More
- Friday December 16, 2011
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Photos of 135 Lombard
Our achitect Number 10 took photos of the interior of our new building. - » Read More
- Wednesday December 14, 2011
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Happy Holidays & Welcome New Members of the Sigurdson McFadden Team
Sigurdson McFadden would like to thank our clients for their continued support and we extend extend warm wishes to you and your family for a joyous - » Read More
SM Benefits & Pensions:
Canadians Not Prepared for Retirement
Posted by: Kevin McFadden
In a study on savings for the C.D. Howe Institute, David Dodge finds that if Canadians want to maintain the same standard of living after they retire, they need to stash away between 10 and 21 per cent of their pre-tax earnings every year if they save for 35 years. The grim reality is that very few Canadians are near these numbers.
"This fraction is likely far higher than many Canadians believe and higher than is set aside in most employer-based group RSPs or defined-contribution plans," Dodge writes in the paper, co-written with Alexandre Laurin and Colin Busby.
"It is also higher than the effective contribution over time of employer-sponsored defined benefit plans. And for high-income earners, (it) exceeds the annual limits placed on RRSP contributions."
For Canadians over the age of 35 who have not kept up with their savings, they'll need to put aside far more than 20 per cent of their income, for a smooth retirement, the paper says. Or, they'll have to work well past the age of 65.
"Our findings provide Canadians with a reality check about the saving rates required to meet their retirement goals and inform the choices they could have to make between working longer or consuming less and saving more," Dodge said.
Our observation at Sigurdson, McFadden is that unless an employer offers a matching RRSP, DPSP or Pension most employees are not saving on their own.
When companies visit the possiblity of adding a pension plan they have to answer one simple question - " Do you feel any responsibility towards your current employees future retirement". Today approximately only 30% of employers offer any type of employer sponsored retirement plan. This startling stat supports the lack of retirement savings by Canadians.