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(January 29, 2008) Even if they had enough money to retire, most Canadians would choose to keep working, according to a new poll from RBC.

In a survey of 1,200 Canadians, RBC found that 82% would continue to work, 53% of whom would work part-time or occasionally. The study also found that more than a third of Canadians (38%) believe that they will work past the age of 65.

“For most Canadians, retirement doesn’t mean sitting in a rocking chair, watching the days go by,” said Lee Anne Davies, RBC’s head of advanced retirement strategies. “The definition of retirement is changing to include some form of work. Many Canadians may not feel that they are ready to make the transition into full retirement, and continuing to work helps them to stay engaged and connected.”

Enthusiasm for work does decrease by age, the poll finds. More than half of the respondents (56%) plan to continue working as long as possible, but this figure drops to 43% for those 55 and older. Davies speculates that money may be an issue for those who do choose to work longer because 91% of respondents said they wish to retire debt-free.

“People may expect to work past 65 due to their personal or financial obligations. Among those who plan to retire after age 65, nearly one-third expect to support someone in retirement, compared to 22% for those who plan to retire at age 65 or younger,” she says.

The poll also found that only three in 10 Canadians who have an RRSP plan to maximize their contribution for the 2007 tax year.

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Eight hats in the ring for Desjardins presidency

(January 29, 2008) Eight people have been formally announced as candidates to become the next president of Desjardins Group. The election is scheduled for March 15, when 256 members of the electoral college, made up of delegates from Desjardins caisses, will elect the next head of the Quebec-based financial services giant.

A person can hold the position of president and chief executive officer of Desjardins Group for eight years, through two consecutive four-year mandates.

The eight candidates are as follows:

• Bertrand Laferrière, president and chief operating officer (COO) of the Fédération des caisses Desjardins du Québec
• Andrée Lafortune, FCA, professor at HEC Montréal and president of the Council of Representatives, Ouest de Montréal
• Jean-Guy Langelier, president and COO of Caisse centrale Desjardins and chief of the treasury of Desjardins Group
• Monique F. Leroux, senior executive vice-president and CFO of Desjardins Group
• Jude Martineau, president and COO of Desjardins General Insurance Group
• Louis L. Roquet, president and COO of Desjardins Venture Capital
• Clément Samson, president of the Council of Representatives, Québec-Ouest–Rive-Sud
• Sylvie St-Pierre Babin, vice-president of the Council of Representatives, Abitibi-Témiscamingue–Nord et Ouest du Québec

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Knowledge Bureau submits budget wish-list

(January 29, 2008) The Knowledge Bureau has submitted its pre-budget suggestions to the federal finance department, recommending changes to “improve fairness and equity” for Canadians.

First on its list is a desire for the government to change the pension income splitting rules to include self-funded retirement plans.

“Tax savings from new pension income splitting rules introduced for tax year 2007 are lucrative and in some cases can add up to six figures in savings to the wealth of Canadians earning qualified pension income over an average 20-year retirement period,” says Evelyn Jacks, president of the Knowledge Bureau. “However, because eligibility for income splitting is tied into the criteria for claiming the $2,000 pension income amount, the existing rules favour those who retire with employer-sponsored plans over those who have self-funded private pension savings from RRSPs.”

The Knowledge Bureau also suggests improvements to the Canada Pension Plan.

It wants to see couples who have each hit the maximum funding level throughout their working lifetimes receive their deceased spouse’s lifetime contributions. Currently, if one spouse dies, the surviving spouse will not receive a CPP survivor benefit. The Knowledge Bureau would also like to see indexed the CPP lump-sum death benefit, which is currently set at a single payment of $2,500.

Jacks is also advocating a change to charitable giving rules that would recognize both time and money.

“If we can figure out a way to give a community-based fitness credit for children, why not give credits to those who volunteer at the community centre or other worthwhile community endeavours by creating tax recognition for volunteer time?” she asks.

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Legg Mason appoints new CEO

(January 29, 2008) The board of directors of U.S.-based money manager Legg Mason announced Mark R. Fetting as the company’s new president and CEO. He replaces the firm’s co-founder Raymond A. “Chip” Mason, who will step down and serve as non-executive chairman.

A 29-year veteran of the investment management industry, Fetting joined Legg Mason in 2000. He was most recently responsible for the firm’s worldwide mutual fund and managed account businesses as senior executive vice-president.

“Following a very comprehensive due diligence process, the board is unanimous in its conviction that Mark’s extensive industry experience, superb leadership skills, keen intellect and business acumen make him the ideal steward to lead Legg Mason into the future,” said Harold L. Adams, an independent director who chaired the board’s search committee. “As we congratulate Mark, the board also wishes to greatly acknowledge the extraordinary leadership of Chip Mason, whose integrity and vision has so influenced Legg Mason’s success over the past 38 years.”

Legg Mason is one of the largest asset managers in the world, with approximately $1 trillion under management.

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Wellington West inks deal with Concordia

(January 29, 2008) Wellington West Holdings has signed an exclusive five-year partnership agreement with Concordia University in Montreal, where it will provide more than 120,000 graduates with access to advisory services.

“Alumni will now have exclusive access to some of Canada’s top investment advisors through the Clearsight Investment Program from Wellington West,” said Michael Burns, president of Clearsight. “The program offers alumni the same level of advice and service that is normally and increasingly only available to high-net-worth investors.”

Wellington West says its investment advisors are hand-picked to work with alumni in the program. Each client is matched with an investment advisor whose credentials, experience, objectivity and track record are best suited to meet his or her individual investing profile and objectives.

Also as part of the agreement, Wellington West is granted exclusive sponsorship and advertising rights, which can be used by Concordia as a source of revenue. Wellington West’s contribution will assist the institution with its mandate by supporting alumni events and activities.

(01/29/08)