“All but the strongest euro-area sovereigns are likely to face sustained negative pressure on their ratings,” Moody's said in a statement late yesterday in London. “Consequently, Moody's expects fewer countries below Aaa to retain high ratings.” It added that “there are no immediate pressures that could cause downgrades for Aaa-rated countries.”
DB plans are considered more costly for employers than defined contribution (DC) plans and are becoming more rare in the corporate world. Air Canada for instance is hoping to phase out DB plans by providing only DC plans for all new pilot hires.
Perhaps more worrisome, the study found 31% of respondents said they don't know what percentage of their current annual income they will need to maintain their desired standard of living past the age of 65. Not surprisingly, more than half expect to be able to afford trips and other activities they can't now.
The vast majority of DB plan holders said they rely on the fund as their primary vehicle for retirement savings. On average, members expect 55.7% of their retirement income to come from their DB plan, a further 17.2% to come from government sources and another 12.6% to come from Registered Savings Plans.
“Plan members may need to adjust their expectations to be able to enjoy their retirement while not earning a full income. It's up to plan sponsors to help educate their members about the amounts that might be needed to enjoy a long and fruitful retirement,” MacDonald said.
Canadians live such sheltered lives. They're oblivious to what's going on in the rest of the world and truly believe that out banking system and "sound" regulations are why we escaped economic hardship. Their expectations will get radically readjusted in the next decade. They will discover that a Greek-style implosion can happen here and learn the virtues of living frugal lives, just like Americans are doing right now.
I drove my father and brother downtown this morning and was struck by the traffic on the road. Nothing like a deep recession to get rid of all those useless cars clogging our streets. And on the radio, I smirked as I listened to how housing prices continue going up and the Canadian sheep continue to by the bullshit that "you can never lose money on real estate." (Hint: Get the fuck out of Canadian real estate now!)
I know, I sound so hopelessly cynical. It's because "I haven't dealt with my MS," or because "I'm too negative and nobody wants to work with me." This is the psychological bullying that I had to endure while working at a large Canadian public pension fund. It still bugs me that I'm unemployed while the slimy weasels who screwed me are still getting way overpaid while they beat their bogus benchmarks and lost billions after the crisis, but my psychologist keeps reminding me, "acceptance is deliverance from hell."
I made peace with my past. I forgive but I will never forget. I accept that I got royally screwed and that many others will continue getting screwed in finance where the most insecure, unscrupulous, slimy weasels rise to their level of incompetence. The "Peter Principle" is alive in well in many financial institutions and at a handful of Canadian public pension plans (read Altucher's comment on dealing with crappy bosses). There are, however, good people too, people who I trust and listen to when it comes to trading, pension investments and issues.
One of those is a former colleague of mine from PSP Investments. He's much happier now trading from home and doesn't miss the "institutional bullshit" of large organization with all the "cover your ass politics." I don't either which is why I refuse to work for slimy weasels. They can be found everywhere, not just pensions, but life is too short to deal with assholes on a daily basis. My friends are doctors and even though doctors have their own quirks, most of them love their job and work environment.
This is what I want too, get a group of competent people together, no egos, no bullshit, just trade, make money, watch each others back, have fun and give some of our profits back to worthy charities. Might be a pipe dream in Montreal, but that's what I want and I know enough competent people to set this up properly and make it into a successful venture. What does all this have to do with markets and pensions? Absolutely nothing. It's my blog and I have the right to vent once in a while.
Don't forget, I'm not a charity, so please donate generously by clicking on the PayPal button at the top of my blog. And to all you pension pricks who continue to blacklist me, I suggest you do everything in your power to help me or else I will come at you even harder. This is not a threat, it's a fact. I've had enough of your bullshit and you know exactly who you are.
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