How to Make the Most of your Pension Plan

Risk Management Financial Planning

How to Make the Most of your Pension Plan


Whether you’re confident or concerned about your company pension — or if you don’t have one — these tips will help you boost your retirement savings.

Headlines about troubled company pension plans may have you thinking about your own plan, if you have one. Here is a guide to the differences between the 2 major types of pension plans, along with some tips to help you boost your retirement savings, whether you’re supplementing a company pension or building your retirement fund in the absence of one.

Pension plan trends

If you don’t have a company pension plan, you’re not alone. A  2011 Statistics Canada study found only 37% of male workers and 40% of female workers aged 25 to 54 had registered pension plans.

Company pensions are typically 1 of 2 types: either defined benefit or defined contribution

According to Statistics Canada, 84% of Canadians with a company pension plan in 1960 had a defined benefit plan. Another 14% had a defined contribution plan, and the rest were in hybrid or “other” plans.

Fast-forward to the 2010s, and the balance has shifted significantly.

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