National Pension Hub Publications / Pension Industry
Affordable Lifetime Pension Income for a Better Tomorrow
How we can address the $1.5 trillion decumulation disconnect in the Canadian retirement income system with Dynamic Pension pools
Bonnie-Jeanne MacDonald, PhD, FSA, FCIA, Director of Financial Security Research, National Institute on Ageing
Barbara Sanders, FSA, FCIA, Associate Professor, Simon Fraser University; Associate Fellow, National Institute on Ageing
Laura Strachan, FIA, FCIA, Consultant, Eckler
Mitch Frazer, LLB, Partner and Chair, Pensions and Employment Practice, Torys LLP; Founder and Chair, National Institute on Ageing
The lack of an acceptable, readily available option to convert retirement savings into affordable monthly lifetime income is creating a dangerous disconnect in the Canadian retirement income system, and there is widespread concern that this will lead to increasing financial insecurity for a large portion of the elderly population.
To effectively address the decumulation disconnect, affordable lifetime pension income needs to be broadly available to all retiring Canadians, from a variety of providers. This report outlines the key features of a universally accessible regulatory framework that can bridge the decumulation gap by promoting successful implementation of Dynamic Pension (DP) pools across the entire Canadian retirement income system.