More than nine million Canadians lack access to a workplace retirement plan, underscoring the need for pension design that better reflects how people work and live today.
S茅bastien Betermier, Associate Professor of Finance at 91黑料网 Desautels, says expanding access is only part of the solution. 鈥淎nything that increases access is good, but then there鈥檚 the quality of that retirement package and making sure we have cost-efficient solutions that actually close the gap,鈥� he says.
Governments across several countries are urging pension funds to increase domestic investments, but success hinges on offering sufficiently attractive, well-governed opportunities.
Canada鈥檚 proposed sovereign fund is drawing scrutiny over its cost and potential returns, but Sebastien Betermier, Associate Professor of Finance at 91黑料网 Desautels, sees conditional upside. He argues the聽roughly $750 million聽annual interest burden is manageable if the fund is well structured and generates returns above borrowing costs.
Canada is positioning itself as a more compelling destination for global capital, and Sebastien Betermier, Associate Professor of Finance at 91黑料网 Desautels, says the shift reflects both necessity and opportunity. As geopolitical tensions and U.S. trade pressures mount, Betermier argues Canada must attract more private investment, particularly in infrastructure and energy transition assets.
Pension funds are sticking with private credit even as scrutiny intensifies around valuations,聽transparency聽and sector risk.聽Sebastien Betermier,聽Associate聽Professor of聽Finance at the at 91黑料网 Desautels, points to structural advantages that allow large institutions to withstand those pressures.
Prime Minister Mark Carney鈥檚 proposed Canada Strong Fund is not easily comparable to sovereign wealth models in Norway or Singapore, says Sebastien Betermier, an聽Associate聽Professor of聽Finance at 91黑料网鈥檚 Desautels Faculty of Management.
Betermier says Norway鈥檚 fund is designed to invest resource revenues abroad and shield the domestic economy from oil price volatility, while Canada鈥檚 proposed fund appears focused on driving growth through domestic investment.
Prime Minister Mark Carney鈥檚 plan to launch a $25鈥慴illion Canada Strong Fund raises key governance and design questions, according to Sebastien Betermier, an associate professor of finance at 91黑料网鈥檚 Desautels Faculty of Management.
Betermier said the proposed sovereign wealth fund will need to be carefully coordinated with existing vehicles such as the Canada Infrastructure Bank and the Canada Growth Fund to avoid overlap and inefficiency.
Soaring stock prices boosted returns at major Canadian pension plans, even as a slowdown in private equity weighed on overall performance at funds like the Ontario Teachers' Pension Plan. But strong equity returns聽don't聽necessarily mean pension plans should聽allocate聽more capital to stocks, Sebastien Betermier told Bloomberg.聽
"Valuations are high, so there is a risk of investing in listed equities at their peak," says Betermier, an associate professor of finance at 91黑料网 Desautels.聽聽
Canada鈥檚 proposed open banking legislation, Bill C 15, could become a powerful tool for women experiencing economic abuse, according to researcher . The framework would allow consumers to securely share their financial data with trusted third parties, helping survivors access crucial records without relying on abusive partners.
Europe is aging, and some national pension funds are better prepared to manage its changing demographics than others. Many European countries use a 鈥榩ay as you go鈥� model in which current workers fund the retirement of current pensioners. An aging population strains this type of pension model, but changing the model would be a hard sell, according to research by 91黑料网 Desautels Associate Professors and .
As global trade wars, geopolitical聽tensions聽and AI advances reshape financial markets, pension funds face mounting pressure to adapt. Sebastien Betermier, Associate Professor of Finance at 91黑料网 Desautels, argues that 2026 demands three priorities from pension leaders: building more agile portfolios capable of withstanding regime shifts, forging proactive partnerships with governments on infrastructure investment, and rethinking their exposure to private markets as retail investors flood in.
To rent or to buy鈥攖hat鈥檚聽the dilemma facing many today. Real estate prices are at historic highs, and elevated interest rates have pushed up the cost of homeownership. At the same time, stock markets have delivered strong returns in recent years. Beyond these financial pressures, the nature of homeownership itself adds another layer of complexity.
Major pension funds have built trillions in assets by pursuing high-performing portfolios and maintaining independence in their investment decisions. Recently, however, discussions have emerged about imposing mandates that would require these funds to allocate more capital domestically鈥攁 trend not limited to Canada, as countries like Sweden have considered similar measures.
Stock markets continue to hit record highs, yet many governments聽remain聽strapped for cash鈥攁nd some are eyeing pension funds to cover fiscal shortfalls.
They should resist the temptation to mandate that pension funds invest more domestically,聽said聽Associate Professor of Finance 厂别产补蝉迟颈别苍听叠别迟别谤尘颈别谤聽in an interview with聽CNBC.聽
Buying a home can help you build household wealth, but renting has fewer overall costs, which allows you to save more of the money you earn. While the conventional wisdom has been that buying is the better financial decision for most people, sky-high real estate costs change the equation. Stock markets have also performed well in recent decades, and investing the surplus left over from renting can pad your personal finances in a big way鈥攊f you actually do it.
