On Wednesday November 16, 2011, A. Marc Deschamps and Christine Régimbal, Assurance Partners with the Montréal office alongside Scott MacDonald, Head, Pensions, Insurance, Financial Institutions Product at RBC Dexia Investor Services, presented the conclusions of a pan-Canadian study sponsored by Raymond Chabot Grant Thornton and RBC Dexia, during a noon-hour seminar held in RCGT’s offices.
The study results indicate that 83% of participants in defined benefits (DB) plans are optimistic and believe that when they retire, their organization’s DB plan will have sufficient money to pay them. Moreover, only 5% of members claim that they recall reading, seeing or hearing about underfunding problems or deficits in DB plans.
Additionally, 31% of participants indicated that they didn’t know what percentage of their current annual income they will need to achieve their expected standard of living in retirement. And, when queried as to their planned recreational activities in retirement, 59% said they would do things that they couldn’t while they were working, such as travelling.
A. Marc Deschamps, Assurance Partner with Raymond Chabot Grant Thornton, said: “The questions being asked regarding Canadian DB plans and the challenges facing them are totally unclear to members of such plans. With each new well-known DB plan that is beset with difficulties, particularly in a financial market that is so unstable and volatile, DP plans are faced with an increasing urgency to make their members more aware of the health and sustainability of their specific DB plan.”