Day reminds workers they need to plan for retirement

Thursday was the day set aside each year to remind people to think long-term about the day when they are no longer working and get pension planning in order.

Each year, a day is set aside to remind people to think long-term about the day when they are no longer working.

This year, Feb. 19 was the fourth annual Pension Awareness Day, put on by the Financial Services Regulatory Authority of Ontario.

The organization is using the day to urge workers and employers to take a closer look at how workplace pensions fit into long-term retirement security.

“We’ve seen an increase of about 200,000 people or more participating in these workplace pension plans this year,” said Faisal Siddiqi, the authority’s chief actuary for pensions

“A lot of people who are participating in their workplace pension plans, they do receive an annual pension statement. And one of the research findings we had is that half the people don’t even read their pension statement or may not understand them.”

Most people aren’t ready

In Canada, eight out of 10 people don’t have fully developed a retirement plan, while 66 per cent haven’t calculated how much money they’ll need in retirement.

And 50 per cent can’t recall the last time they spoke to someone about saving for retirement. Siddiqi said it’s not too late for most people to swing into action.

“If you haven’t calculated your pension or you haven’t developed a plan, you know, it’s never too late,” he said.

“Most people don’t do it (until) closer to retirement. And the earlier you do it, the better.”

Jason Bissonnette has been a financial adviser for eight years in Sudbury, said he started planning when he was 17.

“It’s the best thing that ever happened to me,” Bissonnette said.

“Just this morning, I had a meeting with a client -- she is 21 years old and wants to start planning for her retirement and her future (since she’s) graduating from college in a couple of months.”

Clients also plan for events such as buying a house and vacation properties, he added.

“It’s one of these subjects that a lot of people kind of sort of take for granted,” Bissonnette said.

“It’s live for today. Worry about tomorrow, tomorrow.”

This year’s pension awareness day campaign highlighted the three keys to retirement security: understand your plan, stay informed and engaged and plan ahead.