Do you know where your retirement money is? Study finds thousands have forgotten pensions

As retirement approaches, many Canadians are realizing that they may have forgotten about valuable savings that have been sitting untouched for years. Judy Shapiro, a 74-year-old retiree, recently discovered a retirement fund that she had contributed to decades ago while working for the CBC in the 1970s. She had completely forgotten about the fund until she stumbled upon the paperwork while going through old files.

Shapiro had contributed $8,000 to a retirement savings plan for ACTRA members, but had not kept track of it over the years. When she finally reached out to ACTRA, she was shocked to learn that her initial investment had grown to over $100,000. By converting the account to a Registered Retirement Income Fund (RRIF), she now receives an additional $650 in her pocket every month.

Shapiro’s story is not uncommon, as many Canadians may have lost track of retirement savings due to changing jobs, addresses, or phone numbers over the years. A report by the National Institute on Ageing found that nearly 200,000 people with registered pension plans in Ontario alone are considered missing, totaling about $3.6 billion in unclaimed money.

Sebastien Betermier, an associate professor of finance at McGill University, notes that retirement savings often take a back seat to more immediate financial priorities, especially for young adults just starting their careers. With the increasing turnover in the job market, it can be challenging for pension plans to locate missing members and distribute unclaimed funds.

Pension plan administrators may try to reach out to missing members, but privacy laws and outdated contact information can make it difficult to make contact. Organizations like OP Trust in Ontario have hundreds of missing members who are eligible to receive significant monthly payments if they can be located.

While the government may not prioritize the search for missing pension funds, the impact on individuals can be significant. Billions of dollars in unclaimed benefits and taxes are at stake, making it crucial for Canadians to take the time to track down any forgotten retirement savings.

Ultimately, Shapiro advises individuals to reach out to past employers and pension plans to determine if they have any unclaimed funds waiting for them. It’s never too late to start looking for forgotten retirement savings and ensure a more secure financial future in retirement.