Co-Founder Alex Mazer presented at the 2017 ACPM National Conference on September 13. Click here for his presentation, “Expanding access to high-quality retirement plans for modest earners”, which was part of a plenary session on Changes and Choices – The New Economy and Plan Design Considerations.
Canadians are earning income in non-traditional roles – the gig economy. What impact will this have on workplace retirement programs and how Canadians save? This session provided insight on the future innovations that should be delivered to meet the changing needs of Canada’s evolving workforce.
Alex stressed the need to focus on retirement security for modest earners -– those who are not middle class, but not living in poverty. Studies have shown that they are able and willing to save for retirement, but they likely can’t contribute 10%-20% of their pay. Also, it is to their disadvantage to save within a Registered Retirement Savings Plan (RRSP) because the Guaranteed Income Supplement (GIS) “clawback” has a punitive effect on lower-income savers. This is why plan sponsors need to design plans with flexibility to meet the needs of their workforce. One example is my65+, which offers SEIU Healthcare members and their spouses a low-fee group plan that is portable, preserves government benefits, and provides 3x greater value for each hard-earned dollar of contribution.