Oh, hi again. Today, we are diving into how Ontario’s new pay transparency law is a big win for your financial planning. Let’s get into it.
Pay transparency is on the rise
If you’ve ever clicked on a job posting, scrolled all the way down and still had no idea what it paid, Ontario has some good news for you.
As of Jan. 1, new rules under the province’s Working for Workers Act mean many employers can no longer keep salaries a mystery. Companies with at least 25 employees now have to include a salary range or hourly wage in job postings, and that range can’t be wider than $50,000. Employers also have to let candidates know whether they got the job within 45 days of an interview.
Employment lawyers are still debating how enforceable the new rules will be. But in a job market this tough, the change is still a meaningful win, and one that could make financial planning a little easier.
“This should help people with their long-term financial planning by giving them a true sense of their future income earning ability,” said Jason Heath, managing director of Objective Financial Partners. For young people in particular, he said, it can help with big decisions like which career path to choose or which city they can realistically afford to live in.
That matters, especially as younger workers face one of the most brutal job markets in years.
The changes can also benefit people who are already working, said Louisa Benedicto, senior vice-president at recruitment agency Hays.
Seeing posted pay ranges gives employees a clearer picture of what other companies are offering for similar roles, she said, which is information that can help them negotiate a raise or decide whether it’s worth switching jobs.
It can also be useful for people thinking about upskilling. If a role pays more because it requires a certain certification or technical skill, workers can see whether the extra effort is likely to pay off. “I see it as a big win for people,” Benedicto said.
Salary transparency also helps those considering a career change but unsure what pay looks like in a new industry, she said. “A lot of people are stagnant, they’re looking to earn more, and they’re thinking about career moves,” she said, but without clear salary information, it’s hard to know whether a switch would actually move the needle.
There is one big catch: the law only applies to public job postings, Benedicto said. Employers are not required to share salary ranges internally, meaning workers may still have to do some digging when it comes to their own roles.
The Calculator
📈 Stocks are up on profits, not hype. Last year’s big gains came mostly from soaring corporate earnings, not investor frenzy. U.S. and Canadian companies boosted margins despite policy headwinds and economic uncertainty, driving the market’s momentum even as valuations remain high.
The Retirement Receipt
Kelvin and Rosita have a mortgage-free house in the Greater Toronto Area and substantial savings.Sammy Kogan/The Globe and Mail
How Kelvin and Rosita, both 64, can pass wealth to their four kids without jeopardizing retirement
The numbers: Kelvin and Rosita have a mortgage-free $1.6-million home and about $4.2-million in assets, including pensions, registered savings, TFSAs and a small consulting corporation. Kelvin plans to retire in 2027 but will keep earning about $90,000 a year from part-time consulting. Their retirement spending goal is $125,000 a year after tax.
The situation: They want to enjoy retirement, help their four children financially, including with home purchases, and begin transferring wealth in a tax-efficient way, without taking on unnecessary risk.
Key steps, from a financial planner: Kelvin continues consulting and leaves the income inside his corporation, potentially using an estate freeze to shift future growth to the children. The plan also includes pension and RRIF income splitting, using FHSAs to help the kids buy homes, delaying CPP and OAS to age 70, and reducing portfolio risk.
Best of the Rest
💼 Retirement has rewired Rob Carrick’s approach to spending. The former Globe staff columnist thought he had his post-work spending mapped out, until inflation blew up the plan. The biggest surprise was how hard it is to switch from saving to spending, and how inflation makes retirees feel more financially vulnerable, even when the math says they’re fine.
🏦 Canada’s biggest banks are under fire over sales practices that critics say hurt seniors. CARP’s chief executive officer says banks have failed to act after regulators flagged sales pressure in branches that can lead to unsuitable investment advice. Banks say they’re co-operating with regulators, but CARP argues the response doesn’t go far enough to protect older Canadians who rely on branch advisers.
✈️ More grandparents are taking trips with their grandkids and leaving the parents behind. From safaris to cooking classes, these adventures are becoming a meaningful retirement splurge. But they take planning: financial experts say knowing how to pay for travel (without derailing retirement savings) is what turns a dream trip into a joyful one.
💻 A post on Reddit asks: Why are Canadians so stressed about retirement? With income from CPP and OAS, the poster wondered whether the anxiety is overblown. The replies tell a different story. While government benefits may cover the basics, many Canadians say they fall short of the retirement they actually want. One that includes travel, hobbies, and the freedom to enjoy life, not just get by.
Try This
💸 Pay yourself for skipping your bad habits. Globe reporter David Berman wrote this week about rewarding himself $5 every time he cooks at home instead of ordering takeout. Then, he uses that money for guilt-free fun. I’ve started my own version: $5 for every night I don’t scroll on my phone before bed, with the cash going toward more books to read instead.
