{"id":20110,"date":"2020-11-02T15:00:19","date_gmt":"2020-11-02T20:00:19","guid":{"rendered":"https:\/\/www.benefitscanada.com\/news\/cap-income-replacement-levels-up-from-all-time-lows-in-march-report-151904"},"modified":"2020-11-02T15:00:19","modified_gmt":"2020-11-02T20:00:19","slug":"cap-income-replacement-levels-up-from-all-time-lows-in-march-report","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2020\/11\/02\/cap-income-replacement-levels-up-from-all-time-lows-in-march-report\/","title":{"rendered":"CAP income replacement levels up from all-time lows in March: report"},"content":{"rendered":"
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Staff <\/span> | November 2, 2020 <\/p>\n

The average gross income replacement ratio for a typical defined contribution plan member was up at the end of September, according to Eckler Ltd.\u2019s latest capital accumulation plan income tracker.<\/p>\n

It found a typical male DC plan member retiring at age 65 at the end of month saw their gross income replacement ratio returned to 56 per cent from the all-time low of 53.1 per cent in March. For a female DC plan member, the ratio increased to 54.5 per cent from the all-time low of 51.6 per cent at the end of March.<\/p>\n

Read: Average CAP income replacement level remains steady in Q1: report<\/a><\/strong><\/p>\n

\u201cWith three quarters of 2020 behind us, given the resurgence of COVID-19 cases and new lockdown measures that will continue to weigh on economies, uncertainty is likely to remain the theme for the rest of the year,\u201d noted a press release. \u201cThe resilience of the equity markets following the sharp market contraction in the spring has helped push the recovery of retirement incomes toward pre-pandemic levels.\u201d<\/p>\n

Since the tracker was introduced in 2006, the gross income replacement ratio for a typical CAP member has been trending downward. More importantly, however, this trend has also impacted the ability of CAP members to maintain their standard of living in retirement, said Eckler.<\/p>\n

The CAP income tracker assumes the member made annual contributions at a rate of 10 per cent starting at age 40, will receive maximum old-age security and Canada\/Quebec Pension Plan payments and will use their CAP account balance at retirement to buy an annuity. The account is invested based on a balanced strategy.<\/p>\n

Read: Capital accumulation plans\u2019 income replacement levels on the rise<\/a><\/strong><\/p>\n

Read the full article at BenefitsCanada.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Staff  | November 2, 2020 The average gross income replacement ratio for a typical defined contribution plan member was up at the end of September, according to Eckler Ltd.\u2019s latest capital accumulation plan income tracker....<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/20110"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=20110"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/20110\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=20110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=20110"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=20110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}