December 11, 2013 – Richard Guay and Laurence Allaire
Low investment returns loom in the decades ahead, spelling bad news for retirement savers and pension plan managers, according to a report released today by the C.D. Howe Institute. In “Long-Term Returns: a Reality Check for Pension Funds and Retirement Savings,” authors Richard Guay and Laurence Allaire challenge widely used “optimistic” assumptions for investment returns based on historic experience, with more realistic ones using current Canadian data . “Some pensions could face bigger pension liabilities and individual savers will have to save more or work longer, if they are to avoid a large drop in their post-retirement lifestyles,” commented Richard Guay.
For the report go to: http://www.cdhowe.org/pdf/Commentary_395.pdf