As the Canadian economy has come to a near standstill, public equity markets have declined sharply and interest rates have dropped. This has caused sudden unanticipated and significant financial hardships for defined benefit (DB) and defined contribution (DC) registered pension plans, along with other common types of employer-sponsored retirement savings plans in Canada.
Registered Pension Plans
Recently, questions and concerns have been raised about the adequacy of future retirement income for certain members of the Canadian population. These concerns have received particular attention in light of the global ecomonic downturn and other emerging issues, such as longer life expectancy, imminent baby boomer retirements, and declining private pension plan coverage.