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Thu, January 12, 2012 The State of Pension Plans Is Shaking the Confidence of Canadians in Their Own Retirement
January 12, 2012 10:42 ET
The State of Pension Plans Is Shaking the Confidence of Canadians in Their Own Retirement
MONTREAL, QUEBEC--(Marketwire - Jan. 12, 2012) - (TSX:NA) - The most recent survey carried out as part of the National Bank Retirement Index1 shows that Canadians are especially concerned about the funding of private and government pension plans in the context of their own retirement planning.
Consequently, despite an increase in 2011 in Canadians' confidence with respect to the financial issues linked to retirement (the Financial Index rising from 5.4 to 5.9), it remains low overall. Furthermore, the two questions about private and government pension plans continue to record the lowest results in the survey, reflecting investors' concerns in this area.
| Financial statements (scale of 1 to 10) | TOTAL CANADA | ||
| Dec. 10 | Dec. 11 | Difference | |
| Base: Total | 1554 | 1602 | |
| I know that I will be able to properly manage my expenses during retirement so that I don't spend my savings too quickly | 6.3 | 6.8 | 0.5 |
| I am confident that I won't have to return to the job market once I've retired | 6.2 | 6.7 | 0.5 |
| I am confident that I will be able to meet my retirement savings targets | 5.6 | 6.0 | 0.4 |
| I have a well-established personal savings strategy | 5.3 | 6.0 | 0.7 |
| I know quite a bit about the financial aspects of retirement | 5.5 | 5.9 | 0.4 |
| I am confident that I won't use up all my savings even if I live longer than I expect | 5.4 | 5.8 | 0.4 |
| I am confident that private pension funds will be able to meet their commitments | 5.2 | 5.5 | 0.3 |
| I've done disciplined and comprehensive retirement planning | 4.7 | 5.3 | 0.6 |
| I am confident that the government will have enough money to pay the pensions they are supposed to | 4.8 | 5.1 | 0.3 |
| FINANCIAL INDEX (9 statements) | 5.4 | 5.9 | 0.5 |
The December 2011 results showed that respondents' confidence in the financial aspects was influenced by whether they contributed to a private pension fund, and by the type of plan (with defined benefits or contributions). Those contributing to a defined benefit pension plan are much more confident about their retirement than those who have a defined contribution plan, as shown in the table below:
| Respondents | Confidence index (financial component) |
| Individuals who contribute to a defined benefit pension plan | 6.8 |
| Individuals who contribute to a defined contribution pension plan | 6.0 |
| Individuals who do not contribute to a private pension plan | 5.4 |
"The precarious situation concerning the funding of some pension plans is definitely a concern with the general public. There is no doubt that as the population ages, Canadians will, more and more, have to take charge of their retirement planning," stated Jean-Stéphane Parent, Senior Manager - Strategy and Client Experience, National Bank.
For more information on the National Bank Retirement Index and the various retirement analysis tools offered by National Bank, go to [ www.nbc.ca/retirement ].
About National Bank of Canada
National Bank of Canada is an integrated group that provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. National Bank offers a full array of banking services, including retail, corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. National Bank has over $156 billion in assets and, together with its subsidiaries, employs 19,431 people. The Bank's securities are listed on the Toronto Stock Exchange (TSX:NA). For more information, visit the Bank's website at [ www.nbc.ca ]. To access National Bank's financial education portal, visit [ www.clearfacts.ca ].
1Semi-annual survey of 1,602 respondents across Canada conducted by Saine Marketing for National Bank from November 15 to 30, 2011.
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