Pension Plan Solvency: Good News For Members + MORE Jun 13th

For the most part, I think Canadians have the advantage over Americans. Our housing economy didn’t crash (completely), our banks don’t appear to be failing, and medical care is downright affordable. One place where our southern friends do have the advantage, however, is when it comes to credit reports.
Everyone knows that they should be checking their credit report. A credit report is very, very important when it comes to maintaining your financial health.

Checking your credit report will allow you to quickly and efficiently challenge incorrect reports, find potential identity theft, and ensure that financial institutions give you the best deal possible when doing business. Not checking your credit report is like never going to the dentist. You may not feel like you have a problem, but if you wake up one day with a tooth ache you’ll wish you did some basic maintenance rather than a massive root canal.
In America, at least, you can get 3 free “checkups” every single year from the 3 major reporting agencies…

Father’s Day is coming up this weekend – and you’re likely among the hordes at the mall shopping for dear old dad. According to BMO Bank of Montreal’s 2013 Father’s Day study, dads can expect a sweet haul: spending has increased on presents for pop by 10 per cent from last year.
The average cost of Father’s Day gifts comes to $95 – up from $86 in 2012. However, this still comes up short when compared to the average $107 shelled out for Mother’s Day! The study also found that sons tended to spend more on their fathers with an average of $110, compared to daughters at $80.
Don’t Overspend On Hallmark Holidays
While dad certainly deserves to be spoiled (did you teach yourself how to ride that bike?), consumerist holidays can easy to blow off your budgeting principles, especially for younger earners who tend to be on tighter budgets. That might mean sticking to a savings guideline if you’re looking to surprise dad with a bbq or tickets to the big game.
In these cases, it can be tempting to pull out the credit card – but be careful not to let Father’s Day linger on your balance year round…

Do you have an employer sponsored pension plan? Consider yourself lucky. Today fewer than three in 10 Canadians have a company pension plan – and those who do face an uphill battle with their savings. While low interest rates are welcomed if you’re paying off debt like a mortgage or credit card, they pose a challenge for retirees and company pension plans who depend on interest rates for decent returns.
Despite the low rate environment, though, new developments are in store for pensions in 2013. The Mercer Pensions Health Index reached 91 per cent for May, up from 86 per cent in April and 82 per cent at the beginner of 2013.
Behind the Numbers
So why is the solvency of pension plans all of a sudden improving? “Pension plans are getting a boost from three key sources: buoyant equity markets, rising long-term interest rates and plan sponsors making contributions to fund the deficits,” says Manuel Monteiro, a partner in Mercer’s financial strategy group. “For many plan sponsors, getting back to a fully funded status is now clearly in sight…

News of Canadian banks increasing their mortgage rates has some mortgage brokers on edge, according to an article from Mortgage Broker News. The main area of concern? That monolines will follow suit.
Monolines are mortgage lenders that focus solely on mortgages. Whereas banks and credit unions have other loan types and products to sell, monolines are focused on home loans. Mortgage brokers are often able to obtain mortgages with ultra-low rates from these lenders, helping them get business from homebuyers looking for rates lower than the big banks can offer. However, if monolines begin raising their mortgage rates along with banks and credit unions, that competitive edge may disappear for brokers.
It's been widely reported that the Royal Bank of Canada increased its rates. The rate on four-year closed mortgages is set to increased 10 basis points, reaching 3.09 percent, while the rate on five-years will rise 20 basis points, reaching 3.29 percent. Meanwhile, the posted rate on a one-year mortgage is set to increase 14 basis points, reaching 3…

Worsening credit conditions in the U.S. will directly affect domestic banks’ share prices