Stats Canada published an interesting study of Pensions last week, entitled, “Pension plans in Canada, as of January 1, 2014 “, and in it was the great news that more Canadians (total) have pensions (from 2012 to 2013). (Remember previously I did ask Do you have a Pension?)
Looking at all sectors and all types of pensions 169 more Canadians had Pensions from 2012 to 2013 (no that is not in hundreds of thousands, or thousands, it is 169). For all intent and purpose there were the same number of folks with pensions, however, the types of pensions that they have, has changed a fair amount.
- There are 20,868 less folks in Defined Benefit Pension Plans
- There are 6.428 more folks in Defined Contribution Plans
- There are 14,609 more folks in Hybrid Pension Plans, where Hybrid means, “Other plans include plans having a hybrid, composite, defined benefit / defined contribution or other component.“
So what does this really mean? I think the idea of the work related pension is changing (some might say becoming extinct, but maybe not just yet), and most folks (next generation after me) is going to have to take care of their own retirement savings. I was lucky enough to fall into a pension, but unless you work for the government (or a bank) you are unlikely to have a classic pension plan (private sector pension plans are down 0.2%).
This explains why you have some folks (like the Ontario government) that think that folks need to have more retirement savings, and they are going to impose it on you (with the proposed new Ontario Provincial Pension), whether you want it or not.
What is interesting is in the mid-90’s folks at Nortel wanted out of the Pension Plan (a defined benefit program at the time) because it was screwing up their ability to put money in their RRSPs (many thought they weren’t going to stay at Nortel their entire career (and they were right, in hindsight)).
Is the idea of a company pension dead? Opinions, dear reader?
Registered pension plan membership, by sector and type of plan
|2012||2013||2012 to 2013||2012 to 2013|
|number||number||net change||% change|
|All sectors: Total||6,184,990||6,185,159||169||0.0|
|Defined benefit plans||4,422,838||4,401,970||-20,868||-0.5|
|Defined contribution plans||1,030,319||1,036,747||6,428||0.6|
|Defined benefit plans||2,995,771||3,002,068||6,297||0.2|
|Defined contribution plans||146,290||143,034||-3,256||-2.2|
|Defined benefit plans||1,427,067||1,399,902||-27,165||-1.9|
|Defined contribution plans||884,029||893,713||9,684||1.1|
CANSIM table 280-0016.