Millennials in a pension pickle as they overtake boomers
BNN Bloomberg
With the fading of the post-Second World War generation, which made up 40 per cent of the Canadian population from the mid 1960s to the early 1970s, goes the defined benefit pension plan.
According to Statistics Canada, the generation born between 1981 and 1996 now outnumbers the reigning boomers born between 1946 and 1965.
But it’s a hollow victory for the throngs of young workers with little or no retirement pensions. With the fading of the post-Second World War generation, which made up 40 per cent of the Canadian population from the mid 1960s to the early 1970s, goes the defined benefit pension plan.
The defined benefit (DB) pension was the gold standard when boomers dominated the workforce. Worker and employer both paid into it, and regular income - most often tied to the rate of inflation - was guaranteed after retirement. Some included provisions for survivor benefits and other perks younger workers can only dream of today.
