Low rates squeeze Canadian pensions

Canadian pensions are at risk due to low interest rates.

So finds a new study that was recently released by the Global Risk Institute in Financial Services. It adds the economy, Canadian businesses and our job market will all have to expand over the next few years for the pension system to remain viable.

Otherwise, that system must be reformed. For example, private schemes will have to ask for greater contributions from their members and sponsors.

Read: Are occupational pensions too high?

Dr. Michel Maila, president at Global Risk Institute, says, “Recent debates about the current low levels of interest rates in developed economies are really just the tip of the iceberg…Beneath these low rates is ongoing anemic growth, low investment and weak employment.”

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.