Canadian pension plans face further restructuring, survey says + MORE Nov 6th

While sophisticated, affluent investors like the typical MoneySense reader are well aware of the benefits of exchange-traded funds (ETFs), they’re still relatively unknown to most Canadian investors, according to a study being released today by the BMO Wealth Institute. While 55% know about mutual funds and 58% are familiar with GICs (Guaranteed Investment Certificates), only 19% claim to be knowledgeable about ETFs, says BMO, which also sells ETFs through its BMO ETFs arm.
However, once the benefits of ETFs are explained to them properly, the percentage that would be interested in using them more than triples to 60%, BMO found. ETFs have been around 20 years so it’s not that surprising that many investors are still in the process of learning about them, BMO says. They’re particularly appropriate for accumulating retirement nest eggs, it adds.
Low fees, tax efficiency main draws
The two big attractions with ETFs are low management fees and tax efficiency, the report says…

Increased contributions, reduction of benefits among changes expected

Attracting women clients is an ongoing challenge for the financial industry since women do far less formal financial planning than men. Even though women are increasingly in control of more wealth and are likely to be living without a partner for at least part of their adult life, their role as financial heads of households has not translated into increased involvement in financial planning.
A 2007 research study comparing married, cohabiting and lesbian couples’ approach to retirement planning, identified a clear difference in take-up rates between men and women. The inclusion of  same-sex couples enables further understanding of the differences between the role a person has within a couple versus their actions based on gender. The roles within a same-sex couple should line up to roles within all types of couples when it comes to managing the various demands and risks of life. In other words, if someone has the role to do financial planning in a heterosexual couple then it seems appropriate to assume that someone will also have that role in a same-sex couple…

How much income do you think you will need to have in retirement to enjoy the same lifestyle you have now? Do you think you could live comfortably on 60 or 70 percent of what you are currently making? While some of your expenses will be lower, retirement costs more than most people realize when they look at the whole picture.
How Much Money Will You Need in Retirement?
If you are like most people, you will probably underestimate how much it will cost to maintain your current lifestyle in retirement. Rather than thinking that you can live on less money, you will likely need more money in retirement.
Some Expenses Will be Lower in Retirement
Once you are retired, you will probably be able to reduce or eliminate certain expenses from your budget.

You won’t have the cost of the daily commute back and forth to work, and you may qualify for better rates on your car insurance as a result.
Timing your retirement to coincide with being mortgage-free or downsizing to a smaller home means lower housing costs…

Toronto StarPamela Wallin's lawyer says suspension issue not overCBC.caSenator Pamela Wallin gets ready to leave Parliament Hill Tuesday after the Senate voted to suspend her for claiming improper expenses. Her lawyer says she's exploring legal options. (Adrian Wyld/Canadian Press) …Senate blowup seems to have made actual governing secondary in OttawaNational PostStephen Harper rids himself of three problems, but many more remain: Tim HarperToronto StarSenate suspensions mean pension setback for Wallin, Duffy and BrazeauCanada.comThe Globe and Mail -CTV News -Toronto Sunall 220 news articles »