According to an article on CBC’s website, “a new draft set of mortality tables that suggests that the average Canadian woman at age 60 can now look forward to another 29.4 years of life — an increase of 2.7 years over the old mortality tables. The average 60-year-old man can now expect an additional 2.9 years of life — up to an extra 27.3 years.”
“According to Towers Watson, a major pension consulting firm, that creates a potential problem for the sponsors of defined benefit pension plans, which guarantee predetermined pension benefits for their members.
If their plan members are now living longer, as the new mortality study suggests, then pension accounting liabilities could grow, forcing existing members to come up with larger pension contributions.”
Have you planned for your retirement?