TORONTO, Nov. 18, 2011 /CNW/ - The federal government's introduction of
Pooled Registered Pension Plans (PRPPs) is a good first step to helping
Canadians be better prepared for retirement, says Advocis, The
Financial Advisors Association of Canada. The next step is to ensure
that individual members of a PRPP have access to financial advice.
"Almost two-thirds of Canadians don't have a workplace pension plan and
that's unacceptable," said Advocis president and CEO Greg Pollock.
"With the introduction of PRPPs, smaller businesses and self-employed
Canadians will have the opportunity to be better prepared for their
PRPPs are like RRSPs, and are treated in the same way for tax purposes.
The difference is that PRPPs can be set up by small businesses in the
same way that larger businesses currently set up their pension plans.
But Mr. Pollock points out that participation in a PRPP does not negate
the need for individual financial advice.
"Advocis believes that professional financial advice would improve
financial outcomes for the majority of Canadians, and that includes
those Canadians who will be participating in pooled funds," continued
Mr. Pollock. "Financial advisors can lend their support and expertise
to ensure PRPPs achieve their objective of preparing Canadians
financially for the kind of retirement they want."
Participation in a PRPP or other pension plan is only one of many
elements that Canadians should consider when building a comprehensive
financial plan. A financial advisor or planner can help Canadians
better understand and manage all facets of their finances, leading to
improved financial outcomes both pre- and post-retirement.
Advocis, The Financial Advisors Association of Canada, is the
association of choice for financial advisors and planners. With more
than 11,000 members across the country, Advocis is the definitive voice
of the profession, advocating for professionalism and consumer
protection. Professional financial advisors and planners are critical
to the economy, helping consumers make sound financial decisions that
ultimately lead to greater financial stability and independence.
Advocis works with decision-makers and the public, stressing the value
of financial advice and striving for an environment in which all
Canadians have access to the advice they need. For more information
SOURCE Advocis, The Financial Advisors Association of Canada
For further information:
please contact Ann Walker at 416-342-9838.