CANADA - The Office of the Superintendent of Financial Institutions (OSFI) has released the results of a survey conducted to gauge public confidence in Canadian financial institutions and pension plans.
In response to questions regarding pension plans, 75% of respondents expressed confidence that their pension fund would be able to pay their benefits in retirement.
The findings indicate Canadians are very confident their financial institutions are stable, and there is little concern institutions might be getting into financial difficulty.
Nearly nine out of every 10 respondents (89%) indicated they believe money they’ve deposited with banks is safe. In insurance, 81% of respondents said insurance companies have adequate financial resources available to pay claims.
“OSFI is pleased with the continued high level of public confidence in the Canadian financial system, which is essential for ensuring a strong, stable industry sector,” said Nicholas Le Pan at OSFI.
He added: “While there are many factors that contribute to confidence in our institutions, effective regulation and supervision by OSFI is an important one.”
Other key findings included:
• 89% expressed confidence that Canadian banks are financially healthy and stable, up from 78% in the 2004 survey.
• 78% expressed confidence in the financial health of the life insurance industry and 77% in the health of the property and casualty industry. This is an increase from 65% and 66% respectively in the previous survey.
• 82% of members of defined benefit plans, and 71% of members of defined contribution plans are confident that their pension fund will be able to pay their benefits in retirement.
In addition, a majority of Canadians were confident government regulation and oversight worked to promote the financial health and stability of institutions.
The government is in talks with the UK and Irish pensions regulators over how to protect members of cross-border schemes in the event of a no-deal Brexit.
The equalisation of guaranteed minimum pensions (GMPs) is at least two years away from being completed, and could take longer than four years for some schemes, a poll has found.
The Pensions Regulator will consider if schemes should be required to have professional trustees and assess the case for greater regulation of administrators and system providers, PP can reveal.
UK inflation fell from 2.3% to 2.1% in December, approaching its lowest rate for two years, according to the Office for National Statistics (ONS).