The number of defined benefit pension schemes that are in deficit has doubled over the past five years to stand at 92% of the total, making retirement prospects bleak unless changes are made, an accountancy body said on Friday.
Pension funding deficits have risen from $160 billion in 2003 to an estimated $350 billion in 2008 and continue to grow, the Certified General Accountants Association of Canada said.
"Canadians ability to maintain a financially comfortable and healthy lifestyle is bleak unless the retirement system undergoes a drastic makeover," Rock Lefebvre, Vice-President of Research and Standards at CGA-Canada said in the report. "Pension plans should not operate in a manner that unduly borrows from future generations to pay the present one." (more)
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