How do Canadian pensions compare with the rest of the world?

In his third video Martin Leclair, VP at Proteus, chats with Rob Carrick of The Globe and Mail, on Carrick Talks Money, about how Canadian pensions compare with the rest of the world.

Click here to watch the video.

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Rob Carrick: Martin, how do Canadian pension plans compare with the rest of the world?

Martin Leclair: From a pension perspective, Canada is a healthy place. We have support from the government, for example the Canada Pension Plan and Old Age Security, but as a workplace pension we are in good shape.

Rob: Now you said in your earlier video that 30 per cent of Canadians have a pension plan

Martin: Yes.

Rob: And of course DB pension plans would be a declining portion of that. How does that compare to other countries?

Martin: We are in good shape; it is still prevalent in Canada. Of course defined contribution plans are becoming more and more popular but we still have DB plans and 70 per cent of those DB plans are still open – in the US only 30 per cent are still open.

Rob: What about are public pensions like the CPP, how does that compare to other countries and their public pension plans?

Martin:When you look at CPP, the maximum is just about $12,000 ($1,200 per month) and if you add this to your pension plan that you have at work this can prepare you for a very healthy retirement.

Rob: Ok so overall our pension system is quite competitive with the rest of the world. Can we be rest assured in that?

Martin: I think so and when you look at the fee structure and when you look at the investment manager that you would have access to as a plan member, I mean yah, this is a good place.

Rob: Okay, thanks, Martin.

Martin: Thank you.

Watch the first video, How can I tell how good my workplace pension is?'.

Watch the second video, How can I wring the most value from my workplace pension?'.