Pension Plans in Peril? Is Your Retirement Plan Safe?

Toronto, ON - June 5, 2003 No doubt the three-year bear market has been tough on individual investors but recent news has highlighted the perils of many of Canada's pension plans. According to several benefit consulting firms, Canada's public and private pension plans are witnessing funding shortfalls of an estimated $225 billion.

What does this mean to the Canadian employees who are counting on their pension benefits for retirement? Will they be affected? Will employers revise pension plan strategies in response to the current stress of the market?

Many experts agree it's still early to speculate what the impact will be. Pensions are long-term propositions. But from a financial planning perspective, it's never too early to plan ahead.

"The current issues around pension plans underscore the importance of planning ahead and not relying too heavily on only one element for your financial future," says James Kraemer, FCA, CFP.

"Whether you are counting on your company pension plan for most or only part of your retirement needs, it's important to sit down with a financial planner to work through the numbers in advance. There are many opportunities and considerations to factor into a retirement savings strategy," added Kraemer.

Financial Planners Standards Council (FPSC) encourages Canadians to talk to a financial planner about their options and to participate in this month's FPSC online poll which asks Canadians how concerned they are about their pension plans. FPSC can also connect individuals with one or more of the 15,000 professionals in Canada who hold the Certified Financial Planner® (CFP®) designation, the highest standard in the industry.

Simply log onto Find a Planner in the public section of www.cfp-ca.org

Care to talk to a CFP Professional for a related story that you might be working on? See contact below.

Last month's poll results: Asked, "If you are expecting a tax refund this year, what will you do with most of it?" Majority (64%) said they would pay down debt; 10.5% will 'spend it now'; 9.3% will put it in a registered savings plan (RRSP or RESP); 9.3% will put it in the bank (e.g. savings/chequing account); 7% will invest in stocks, bonds or mutual funds (non-registered).

Financial Planners Standards Council is a not-for-profit organization dedicated to benefiting Canadians and the financial planning profession by establishing and enforcing education, examination, experience and ethics requirements for individuals who choose to earn the CFP designation. There are currently more than 15,000 planners licensed to use the CFP marks in Canada, and approximately 72, 000 CFP professionals in 17 countries around the world. See www.cfp-ca.org for further information.

-30-

Note to Media: See our media kit online to learn more about financial planning and the CFP designation in Canada: www.cfp-ca.org/media/media_mediakit.asp

FOR MORE INFORMATION OR TO ARRANGE INTERVIEWS, CONTACT:
Eileen Chadnick/Chadnick Communications for FPSC at (416) 485-4993 or e-mail echadnick@sprint.ca.