Is the Longevity Pension Fund a cure for retirement income worries? Jun 15th

There are plenty of retirement plan options in Canada! Stay on top of the best plans right here.
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 canada pension plan

How does age affect life insurance rates? + MORE Sep 14th

Most of us go through life assuming we’ll reach a ripe old age—and that’s fair, because most of us do. But if you have dependents, it’s wise to protect them from the financial fallout of your death—even if you’re still young and healthy—by getting life insurance. Your age is a pretty b.... More »
 retirement savings

First home savings account: A Gen Z guide to achieving home ownership + MORE Mar 29th

Becoming a home owner is a significant milestone that many young adults wish they could afford. More than two in five Canadians (43%) plan to purchase a home in the next five years, and 24% of them have yet to start saving for a down payment, according to a study conducted by The Harris Poll for Ner.... More »

We’re living longer—here are two ways to boost retirement savings and income + MORE Jan 18th

Maybe you’re taking your first steps towards saving for retirement. Or maybe you’re in the home stretch. Either way, you will likely be using a registered retirement savings plan (RRSP). This Canadian tax-sheltered savings account is more than six decades old, and it has formed the backbone of r.... More »

CPP vs RRSP: Can you transfer your CPP to an RRSP? Dec 21st

I’m 40 years old. Can I transfer my accumulated CPP to an RRSP? —Franco I am going to cut to the chase here, Franco. You cannot transfer your Canada Pension Plan (CPP)  to a registered retirement savings plan (RRSP). Some pensions can be transferred to an RRSP, and there are ways .... More »
 registered retirement savings plan

Making sense of the markets this week: July 3 + MORE Jul 6th

While regular “Making sense of the markets” columnist Kyle Prevost is on vacation, Dale Roberts and I are filling in. Dale’s piece ran last week, and it’s my turn this week. Dale will return next week, after which a well-rested Kyle will resume.  Speaking of Dale, this week he wrote .... More »
Many retirees and near-retirees are enthused about the June 1 release of Purpose Investments Inc.’s Longevity Pension Fund. (For the sake of space, we’ll refer to it as LPF henceforth.) 
Taking on the challenge of providing retirement income for the vast army of people who don’t have classical defined benefit pension plans, Purpose CEO Som Seif and his team appear to have found a way to offer at least some of the secret sauce of traditional DB pensions. 
According to Purpose’s documents, retirees’ biggest fear is: “Will my money last?”
Their LPF solution involves mortality credits that improve the odds that retirees who opt in will never run out of income before running out of life. 
Somewhat reminiscent of the classic tontine structure championed by famed finance professor Moshe Milevsky (see this MoneySense article from three years ago), the idea is for less fortunate retirees who die sooner than they’d like to subsidize those gifted with longevity.
Retired actuary and retirement expert Malcolm Hamilton describes the LPF as “quite an ambitious undertaking…

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