La Cible

Mai 2020

La Cible, magazine officiel de l’IQPF, est destinée aux planificateurs financiers et leur permet d’obtenir des unités de formation continue (UFC). Chaque numéro aborde une étude de cas touchant les différents domaines de la planification financière.

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27 FEATURE ARTICLE This is illustrated in the CPP analysis in Table 83, Life Expectancies of Retirement Beneficiaries by Level of Base CPP Pension (2019), with future improvements, which states that a 65-year-old man in 2019 who receives less than 37.5% of the maximum pension has a life expectancy of 20.3 years, compared to 22.0 years for a man receiving 95% or more of the maximum pension. The difference is 1.7 years for men and 1.4 years for women. Additional benefit CPP and QPP are very similar, particularly in terms of the additional benefit which has been accumulating since 2019. In Table 31, Projected Maximum Additional CPP Retirement Benefit, the CPP report shows how much this benefit could be at age 65, based on the year of retirement. With a few adjustments, this table can be used as a reference point for financial planners. For example, the additional monthly benefit for a person who turns 65 after 2064 could be $600 a month (in 2019 dollars). It seems that the QPP statement of participation will not include this additional benefit for several months yet. Conclusion These triennial analyses are used to define the return expectations offered in the IQPF and FP Canada Standards Council Projection Assumption Guidelines. Curious-minded financial planners can find relevant information in these reports that can be very useful for their daily practice. Above all, however, these analyses serve to reassure us about the sustainability of these plans. We should also remember that they are based on the data as at December 31, 2018. Returns for the year 2019 were very good, about 10,8%, but we can guess that 2020 will be a tough year. As the asset/expense ratio was successively superior to previous valuations, one notes that the returns were exceptional following 2008. Happy reading!

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