Men more likely to dip into retirement savings during tough times: Survey • Working families face high tax hurdles on extra income: Report • Average Canadian household’s net worth $400,000: Report • Canadians need improved options to save for retirement: Report • Average weekly earnings up 0.9 per cent in May: StatsCan
Men more likely to dip into retirement savings during tough times: Survey
TORONTO — More than one-quarter (27 per cent) of men in Canada would consider dipping into their retirement funds to cope with tough times as a result of unforeseen life events, compared to just under one-quarter (23 per cent) of women, according to HSBC’s study, The Future of Retirement: A New Reality.
The survey of more than 15,000 consumers in 15 markets found a significant appetite among savers to dip into retirement savings when faced with financial hardship. However, it also found just four in 10 (40 per cent) Canadians are regular savers.
Moving to a smaller house was among the alternative coping mechanisms explored by the report. Nearly the same percentages of men (19 per cent) and women (21 per cent) would consider downsizing to deal with financial difficulty.
The study showed the financial strain that home ownership is placing on today’s savers, with more than one-quarter (27 per cent) saying that buying a home or paying a mortgage has had a significant impact on their ability to save for retirement.
Working families face high tax hurdles on extra income: Report
TORONTO — Working families with children in Canada face high tax hurdles that could dissuade them from earning extra income, according to Toronto-based public policy think tank C.D. Howe Institute.
In its report, Treading Water: The Impact of High METRs on Working Families in Canada, the Institute claims low-to- mid-income households face taxes on incremental income generally higher than those faced by high-income families.
The Institute calculates a household’s marginal effective tax rate (METR) as the sum of the statutory income tax rate (federal and provincial) and payroll taxes, in addition to the tax-back or phase-out rates for each benefit program to which the household is entitled.
Tax and “clawback” provisions overlap in Canada, which can have a substantial impact on take-home pay, the Institute says. A family’s METRs may make taking on extra work less unfavourable. In many situations, families at very low employment income levels may face higher METRs than higher income families, the report says.
Average Canadian household’s net worth $400,000: Report
TORONTO — The average Canadian household net worth topped $400,000 at the end of 2012, according to a new report by Environics Analytics, a marketing and analytical services company.
The average Canadian net worth was $400,151, the result of a 5.8 per cent pickup during the year. There was a 5.4 per cent gain in liquid assets and a 5.1 per cent increase in real estate values, in addition to a more modest 3.3 per cent rise in household debt.
Regina experienced the fastest growth in net worth among major cities, increasing by 11.2 per cent to $391,826. Hamilton experienced the second fastest growth, with local household net worth rising 9.5 per cent to $420,515.
Vancouver, Calgary and Toronto remain Canada’s wealthiest cities.
Canadians need improved options to save for retirement: Report
FREDERICTON — Canadians need better options to help them achieve a secure retirement income, says a new report, and leaders from all sectors — public, private and labour — must work together to make pensions more sustainable and flexible.
The report summarizes discussions and recommendations from the National Summit on Pension Reform, which was held in Fredericton in February.
Participants identified several key policy directions and leadership actions from all areas to improve the long-term outlook for Canadian pensions, including the following:
• developing improved options for individuals and employers to help close the private sector savings gap
• building nudge or default options into government savings vehicles to make it easier for Canadians to save
• researching the effect of expanding or modifying the CPP, and further studying the shared-risk pension model
• continuing multi-sector dialogue on retirement income security.
Average weekly earnings up 0.9 per cent in May: StatsCan
OTTAWA — Average weekly earnings of non-farm payroll employees were $915 in May, up 0.9 per cent from the previous month, according to Statistics Canada. On a year-over-year basis, earnings increased 2.5 per cent.
The 2.5 per cent increase in weekly earnings during the 12 months to May reflected a number of factors, including wage growth, changes in composition of employment by industry, occupation and level of job experience, as well as average hours worked per week.
In May, non-farm payroll employees worked an average of 33 hours per week, up from 32.9 hours per week recorded the month before as well as in May 2012.
Year-over-year growth in average weekly earnings outpaced the national average in six of the largest industrial sectors, led by construction as well as administrative and support services.
