5 issues that will impact retirement plans

For most clients, building personal wealth is the cornerstone of any plan to achieve a happy, healthy retirement. That said, political decisions made at a federal and even worldwide level often directly affect client investments, as well as how much money they are able to earn and hold onto. This month’s Global View offers insight into four big picture issues that may well affect your clients’ future.

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• An expanded CPP. Provincial and federal finance ministers agreed in June to an expanded CPP, but that won’t stop most of your clients from worrying over how it will affect their own fitness for retirement. Robert Brown offers an overview of the “good, bad and ugly” of the new CPP in Victoria’s Times-Colonist. And Janet McFarlane and Ian McGugan answer some frequently asked questions, including who stands to benefit and who doesn’t, for the Globe and Mail.
• Brexit. In this Huffington Post article, Yves Guillaume A. Messy makes the case that Canada is essentially immune from the negative effects associated with Britain’s exit from the European Economic Community. In fact, Toronto Star business reporter Sunny Freeman makes the case that our country might actually benefit from the deal.
• Our place in the world. It may be reassuring for clients to know that Canada is holding its own globally in terms of retirement security. The staff at Advisor.ca explore French bank Natixis’s finding that Canada ranks number 10 of 43 countries in the world for retirement security. And Truthout suggests that in terms of social mobility, Canada offers a better chance of achieving the “American Dream” than our neighbours to the south.
• The impact of low-interest rates. With interest rates in the doldrums for the foreseeable future, David Cochrane of CBC News explores the risks for Canada’s defined benefit pension plans, as well as how they’re coping.
• Government legislation. Advisor.ca’s Michelle Connolly takes a look at draft legislation aimed at implementing changes to the 2016 federal budget regarding the taxation of corporate class funds.