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Pensions - Where the problem started

There are problems with Pensions in Canada. We've all heard the headlines.
What most of us find hard to hear is straightforward explainations for what is happening and how bad it is.

First, it's not as bad as many would have us believe.
Second, it's bad enough that we can't afford to stick our heads in the sand.

For the most part there are reasonable solutions available, provide we recognize the need for proper planning and monitoring.

If you read through the hype and buzz of the media, it may be possible to arrive at a few significant facts that explain quite clearly what the main underlying causes are for the increasing pressure on our pension systems.

There are three basic and primary factors that have created increased pressure on our pension systems, both our public and private systems.

1. 1. Increased Life Expectancy
2. 2. Increased Benefits provided by PensionPlans
3. 3. Increased workers moving into retirement
   

While the 50% increase in our life expectancy over the past 100 years seems significant, it's not nearly as significant as the 14 fold increase in our time spent in retirement in the past 50-60 years.
(see the material to the right and it's accompanying chart below)