Benefits October 6, 2011

Most Canadians Envision Adequate Savings to Choose Their Retirement Date

October 6, 2011 (PLANSPONSOR.com) - Canadians anticipate saving enough to retire at age 63, and most see themselves entering retirement without debt, according to a new CIBC poll. 
Reported by

The poll also shows that as Canadians draw closer to retirement, they become less optimistic about reaching their savings goals and see it as more likely they’ll carry at least some debt into retirement.

Findings from the poll include:

Get more!  Sign up for PLANSPONSOR newsletters.

•  On average, Canadians believe they will retire at age 63.

•  When asked why they would ultimately retire, the most popular answer among Canadians was that they will have saved enough money to choose their retirement date (37%).

•  Only 22% of Canadians believe they will carry some debt into retirement,  however past CIBC research shows that among retired Canadians, 54% hold some form of debt.

•  Boomers on the verge of retirement in the 55 to 64 year old age group were less likely to believe they would be able to choose to retire based on their savings (only 21%), and more likely to believe they would carry debt into retirement (31%).

“Our CIBC Poll shows that Canadians set out with a vision of building up their savings and eliminating debt to retire at a time of their choosing, but with each passing year they feel less optimistic about their plans,” said Christina Kramer, Executive Vice-President, Retail Distribution and Channel Strategy, CIBC.

A key finding of the poll is that as Canadians near retirement, their optimism in reaching their savings goals for retirement drops:

For example, 43% of Canadians aged 25-34 feel they will be able to choose to retire based on the savings they will accumulate over their working life. However, for those at the leading edge of the baby boom (aged 55-64) that number is cut in half to just 21%.

“As Canadians get closer to retirement, many are finding they have not achieved the retirement savings goals they set for themselves, which could lead to Canadians either working longer than they anticipated, or making adjustments to their retirement such as reducing expenses to stretch their income further,” added Kramer.

Canadians also see their debt being repaid by the time they retire, but as retirement draws closer this also is viewed as somewhat less likely. For example, only 15% of those in the 25-34 age group believe they’ll carry any debt into retirement. That number doubles to 31% for those 55-64 years of age.

Past CIBC polls show that Canadians believe they will be debt free by age 55, but many don’t reach this target. As debt is carried closer to Canadians’ target retirement age of 63 outlined in this poll, it can restrict the cash flow available for savings and may lead to Canadians missing the savings goals they have set for themselves.

Benefits October 6, 2011

Survey Finds Caution and Seasonality Will Influence Hiring

October 6, 2011 (PLANSPONSOR.com) – Caution and seasonality are influencing hiring expectations for the fourth quarter, according to a recent survey by CareerBuilder. 
 
Reported by

Consistent with trends typically seen at the tail end of the calendar, employers anticipate a moderate slowdown in hiring. Twenty-one percent of hiring managers reported they plan to hire full-time, permanent employees in Q4, down from Q3, but on par with 2010.

The tempered plans for Q4 follow a slightly softer recruitment picture in Q3. In terms of actual hiring, 26% of employers reported they added full-time, permanent headcount in Q3. While better than the same period in 2010, this is down three percentage points from Q2 2011—reflecting a more hesitant hiring environment in the face of rising commodity prices, a volatile stock market, concerns over Europe’s sovereign debt crisis and other global issues.

Get more!  Sign up for PLANSPONSOR newsletters.

“While hiring is historically slower in the fourth quarter, recent world events and a structurally impaired U.S. economy are causing employers to be a little more guarded,” said Matt Ferguson, CEO of CareerBuilder. “Job creation levels are not yet high enough to drive down the unemployment rate, but the hiring trends we’ve seen through our surveys and on our job site still indicate an overall positive sentiment among employers. For eight consecutive quarters, 20% or more of employers reported adding new jobs and the same is expected for Q4.”

When looking for talent, companies are still having a difficult time filling certain positions despite the stiff competition for jobs. Two-thirds of employers (67%) expressed concern over the education and skills gap in the U.S. and corresponding deficit in talent for specialized positions. The top areas employers identified as having a significant skills gap include engineering (37%) and information technology (33%).

More than one-in-four hiring managers (26%) reported they hired full-time, permanent staff in the third quarter, up slightly from 25% last year, but down from 29% in Q2. While staff reductions slightly improved year-over-year—11%reporting a decrease in headcount in Q3 2011 compared to 12% in 2010—it was unchanged sequentially. Sixty-two percent of employers reported their staff levels stayed the same in Q3 while 1% were unsure. 

Looking forward, 21% of employers expect to increase their number of full-time, permanent employees in Q4. Ten percent expect to downsize staffs, while 64% anticipate no change and 5% are undecided.

To supplement staffs, 32% of employers turned to temporary help in Q3. Twenty-seven percent plan to hire temporary or contract workers in Q4 with 17% of employers expecting to transition some of these employees into permanent staff.

Regional data presents a mixed picture. While the West leads the U.S. regions in the number of employers expecting to hire full-time, permanent employees in Q4 (23%), it also houses the highest number of companies planning to downsize by year end (12%).

Twenty-one percent of employers in the Midwest and South and 19% in the Northeast plan to add staff in Q4. Ten percent of employers in the Northeast and 9% in the Midwest and South expect to decrease headcount.

Comparing company sizes, small businesses continue to lag larger organizations in hiring activity, but are also less likely to reduce staff levels.

•  Companies with 500 or fewer employees – 17% plan to increase full-time, permanent headcount in Q4; 8% expect to reduce staff levels. Of those with 50 or fewer employees, 12% plan to add new employees while 8% expect to reduce staff levels.

•  Companies with more than 500 employees – 27% plan to hire full-time, permanent staff in Q4; 11% plan to decrease headcount.

Forty-one percent of employers anticipate no change in salary levels in the fourth quarter compared to the same period last year. Thirty-eight percent expect there will be an increase of 3% or less. Twelve percent expect their average changes will be between 4 and 10% and 1% predict an increase of 11% or more. Four percent anticipate a decrease in salaries.

More than 2,600 hiring managers and human resource professionals were interviewed for this survey, which was conducted by Harris Interactive from August 16 to September 8, 2011. The entire report can be downloaded at: http://bit.ly/pvZyd4.

«