COMING IN 2021: A Project by The National Institute on Ageing NIA, Ryerson University and the National Pension Hub
30 October 2020
Addressing the Risk of Outliving Savings - New Project Will Create A Practical Roadmap for Implementation Of Variable Payout Life Annuities
Concerns about Canadians outliving their retirement savings have been mounting in recent years for a variety of reasons - we're living longer than ever before, spending a longer period of time in retirement than ever before, and workplace pension coverage has been declining for decades, to name only a few.
To address this concern, a coalition of experts, seniors’ advocates and organizations came together in 2018 to ask the federal government to amend the Income Tax Act to allow for Variable Payout Life Annuities (VPLAs) - a new type of annuity that aims to provide older Canadians life-time income by pooling longevity risk. The government responded in Budget 2019.