IFIC Recommends Balanced Retirement Solutions

December 6, 2010

NEWS RELEASE
For Immediate Release
December 3, 2010

IFIC Recommends Balanced Retirement Solutions

TORONTO – The Investment Funds Institute of Canada (IFIC) today published its submission in respect of the Ontario Ministry of Finance’s consultation paper related to reforming Canada’s retirement income system entitled Securing Our Retirement Future: Consulting with Ontarians on Canada’s Retirement Income System (the Ontario Paper).

In its submission, IFIC calls for a balanced package of reforms that will strengthen all pillars of Canada’s retirement system including Pillar 4 (non-registered financial assets), and which will provide comprehensive and flexible solutions for all Canadians. The components of Canada’s well functioning, integrated retirement system are interdependent and each is critical to the system as a whole. A balanced approach is needed.

In addition to the comments made in respect of the Ontario Paper, IFIC believes that:

• A balanced set of reforms that would include a modest enhancement of the Canada Pension Plan is achievable;
• Registered pension plans and registered retirement savings plans available in the workplace should be more efficient and accessible;
• There must be accuracy in comparisons of costs of the proposed alternatives on an equivalent basis, which take into account the varying services that are provided to investors;
• Canadians must have the freedom to use multiple sources and choose how they want to save for retirement; and
• Non-registered financial assets (Pillar 4) has proven to be, and will continue to be, an important source of retirement income for Canadians in all income brackets.

“Access, choice, flexibility and balance are hallmarks of our current system, and principles we should follow in these reforms,” said Joanne De Laurentiis, IFIC President & CEO. “All Canadians have a vested interest in the ongoing discussions related to our retirement system, and we encourage them to become engaged in this important public policy debate.”

In its submission on the Ontario Paper, IFIC also addresses the incomplete references to costs associated with retail products without any mention of the important value brought by advisors over the saving lifetimes of their clients. The IFIC submission reiterates the value that advice and advisors play in ensuring that individuals have much higher levels of savings and that they save in vehicles that improve their long-term retirement adequacy.

IFIC urges the federal, provincial and territorial governments to explore the full picture of retirement assets as they consider what actions should be taken related to the current retirement income system in Canada.

IFIC is an active participant in the national debate on Canada’s retirement income system. It has made submissions in respect of the federal and provincial governments’ consultations and to the Research Working Group on Retirement Income Adequacy chaired by Jack Mintz.

The IFIC submission in respect of the Ontario Paper is available on the Policy section of the IFIC website at www.ific.ca.

IFIC is the national association of the investment funds industry. Membership consists of mutual fund companies, retail distributors and industry affiliates.

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For more information contact:
Laurie Gillett
Senior Manager, Communications
The Investment Funds Institute of Canada (IFIC)
Phone: 416-309-2317
Email: lgillett@ific.ca
Website: www.ific.ca

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