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DC Members Need More Assistance


Canadians workers who participate in defined contribution pension plans need more assistance from their employers in understanding their retirement options within those plans, says a report from BlackRock Asset Management Canada Ltd. It found that even though more than half (55%) of employers feel their employees understand their investment options for retirement planning, only 40% of employees actually confirm this to be true. Furthermore, although 56% of employers believe their employees are saving enough for retirement, only 24% of employees feel this to be the case. Exactly half of baby boomers are counting heavily on their workplace savings to ensure a secure retirement and 29% say their DC pension plan will be the biggest source of retirement income. The fact is that an increasing number of Canadians will rely on the performance of their DC pension plans for their retirement as the number of defined benefit pension plans dwindles, says Kin Chin, director of DC solutions at BlackRock Canada. It also found that some companies are implementing tools that make it easier for employees to contribute to their retirement savings plans. Within the past year, 24% changed their company's default contribution rate, 23% began auto-enrolment, and 20% added a company match to contributions.

Courtesy of Benefits and Pensions Monitor website News Alerts 

 

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