Financial planning should be a core benefit

Company pension plans and RRSPs no longer enough for employees
By Peter Merrick
|Canadian HR Reporter|Last Updated: 02/05/2007

Some time ago at a financial education workshop, a 62-year-old executive vice-president shared his story. He was placing his retirement on hold because the value of his corporate-sponsored retirement plans — in which most of his retirement savings were invested — had drastically dropped as a result of a meltdown in the stock market

In recent years, stories of older Canadian workers having to delay their retirement due to financial woes have become more common.

It has been one year since the Canadian Association of Pension Supervisory Authorities (CAPSA) mandated that all capital accumulation plans (CAPs) comply with guidelines developed by the Joint Forum of Financial Market Regulators. One of these guidelines is employers are responsible for providing access to investment decision-making tools and for cautioning employees that they ought to obtain independent investment advice. CAPs include all group RRSPs, defined contribution pension plans, deferred profit sharing plans, employee profit sharing plans and all other types of employee non-registered savings plans in which employees make investment decisions.