Canadians not prioritizing pension plans: BMO

[Tuc]

TORONTO — As pensions come under increased pressure from corporate and public-sector cost-cutting, Canadians need to place a higher priority on saving for retirement, says a new report from the Bank of Montreal.

It says the dwindling number of defined benefit pension plans means more retirees don't have a guaranteed level of retirement income.

"An obvious reason behind this phenomenon is the reluctance of employers to be their employees' retirement income guarantors: in times of low interest rates, uncertain market returns and increasing longevity, the risk is simply too high," said Tina Di Vito, head of the BMO Retirement Institute.

As a result, more Canadians must rely on their own ability to save and invest.

At the same time, Canadians are not placing high priority on a good retirement plan, instead tending to focus on salary and flexible work arrangements, the report says.

The BMO report suggests that more than half of those surveyed could not identify the "must-have features" they would include if they were able to design their own workplace pension plan.

Questions about coming changes to government-sponsored plans have resurfaced since Prime Minister Stephen Harper delivered a speech Thursday at the World Economic Forum about the potential impacts of an aging population on Canada's economy.

Harper said his government will soon take steps to ensure the future of unfunded parts of Canada's retirement income system.

Give me a F'in break.... you greedy bastards!

Its funny how banks always say things like this around RSP TIME do they think we are all stupid. Yes, I'll stop paying taxes, paying bills and eating so I can buy RSP's. Ya let me see...scrimp and save give your money to the bank so they can give you 1% interest and maybe lose it so I can bail them out with even higher taxes. I dont buy it for a second that people can afford to put aside even a little bit a month into retirement savings. Bank's are out of touch with reality.

Now lets all run to BMO and buy some RSP with money we don't have.

[nube]

I have bought RRSP's since I was old enough to and it ticks me off I did.  They are not worth much more than when I first put them in.  I have made more money trading stocks in the last 2-3 years than I have of 15 years of increases with my RRSP's. 
I have found that just paying off my debt is the way to go.  I don't like paying interest on anything and it saves me a ton just by paying off debt.  If your going to buy an RRSP put it in a BANK stock like BMO with the highest dividend payment.  AT least you know if the banks go to crap the world is going to end or the stock will come back right away like it did this last round of recession.  Didn't take long at all for it to come back.  I think BMO pays a 5 or 6 % dividend which isn't too bad either.  My take on it.  I am not a pro but it has worked well for me!

[AxeMan]

RRSPs = deferring your taxes to a later time when the tax rate will increase.  You are being fooled by thinking that your income will be less and your tax rate will be less.  Not correct....taxes only increase as the years tick by.

[nube]

You have a few more years than me Axe.  I would love to hear anyones advice of what to do financially and what works for them.  It could benefit a few of the younger crowd possibly.

[AxeMan]

You have a few more years than me Axe.  I would love to hear anyones advice of what to do financially and what works for them.  It could benefit a few of the younger crowd possibly.

Ha ha Nube, I am not all that old.... although it was my birthday again yesterday.  Still under 50 at least for now.
My only advise to the younger crowd would be to live within your means and don't get bogged down in too much debt.  Money is good now but expectations seem to be high for young families.  As far as investing goes, real estate or land might be the only safe ones. 

[nube]

Didn't call you old Dave   Just stated you had a couple years on me HAHAHA 
Your right on Real estate I think as long as you buy at the right time and hold on for the long haul.  Only problem is if you buy a house then you become a landlord and it could cost you a pile if you get the wrong people renting.   I know nothing about buying land and what makes a good buy. 

[AxeMan]

   I know nothing about buying land and what makes a good buy.

Buying land with big deer on it would make sense to me wouldn't it?   
Win - win.

[Weste]

Buying land with big deer on it would make sense to me wouldn't it?   
Win - win.

I did that.  160 acres and these are the first few deer harvested.  I have started clearing the land for some crops to make it even better.  Can't wait to watch my own kids harvest their first animals on there.  Land is the only thing they cant make more of.  Great investment.  LOL  Payback on an investment shouldn't only be measured in $$'s. 

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[nube]

Buying land with big deer on it would make sense to me wouldn't it?   
Win - win.

I think i have my wife talked into it!!  She was mentioning this morning that we need to stop the RRSP thing and do something else.  I told her to buy land.  She said that might be a good thing!!!

[Tuc]

As far as investing goes, real estate or land might be the only safe ones.

 
In my opinion buying property is a sure shot. Land and real estate go up in value. The only downfall to this scenario is, sometimes we have to sit on it a long time for this to happen.
If you do your homework and buy land in a province that will eventually boom, you are going to make money. Sask will have the same boom Alberta had in 2003-2004. You can still buy a 1/4 over here for $50-60,000. Sk is going to boom, it's a matter of time and you will see land double and then some.