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BMO Retirement Institute Report States that Job Flexibility and Salary are More Important for Canadians Now than a Strong Pension Plan
A recent report released by BMO Retirement Institute shows that Canadians pays attention to job flexibility and salary at the present time. They give value to these things than a strong pension plan. This is a fact presented on the report regarding the evaluation of job opportunities.
Domestic household debt crisis, new pension rules and unstable global stock markets are among the very reasons why there is a need to start a retirement saving. Due to these reasons, this became a famous topic in Canada. It is not a surprise that it became the center of study. From that study, a report was made showing Canadian’s view concerning retirement funds that are now shifting.
This report stated that an increasing number of Canadians believe that job flexibility and salary are more essential than a strong pension plan. Even with a huge number of individuals that are part of the working group, there is still a lot people who do not know something about a good pension plan.
BOM Retirement Institute report also presented the certain figures that give a perfect example of this group of people. One good example is that only 7% of this group of individuals considered an excellent retirement pension as the most important factor. 47% percent of the group considers salary as the most essential factor. There are 22% of people who stated that a flexible work arrangement is more important to them.
On the report, it showed that 9% of the respondents are likely leave their jobs for another. This is when their new employers offer them better savings or workplace pension plan. 51% of the respondents were individuals who do not have an idea about a good pension plans belong.
The report also showed that half of the Canadian worker population has already worked for 5 or more employers. It is expected that about 20% of them will still be working for over 10 employers throughout the duration of their career. Generally, employer pension used to be a simple matter. This is because most Canadians stay with one employee for the rest of their career. However, this subject started to complicate things, especially for employees. This is because they often switched their jobs. As a result, they are left dealing with a lot of pension plans as they continue to work.
Ms. Di Vito, the head of BMO Retirement Institute, commented that a defined contribution pension plan is a valuable tool. This can help employees through their retirement period. However, this is only possible if this managed properly. However, Ms. Di Vito also recognized that most employees do not have the knowledge or time to become active in managing their plan. The good news is that this can be easily resolved with the assistance of a financial professional.
Thus, the head of BMO Retirement Institute emphasizes the importance of educating oneself. They should learn how to take advantage of the workplace pension plan. They should diversify their retirement savings in most cases. Best of all, employees should not hesitate on using the assistance from an expert. He can further help during these situations that is necessary to formulating a well-informed decision.
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