Some Good News

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 a 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.