According to a report, the Canada Pension Plan (CPP) is expected to be able to meet its obligations to remain financially sustainable over the long term, despite the projected substantial increase in benefits paid as a result of an aging population.
Much gnashing of teeth today over the federal government's decision not to play ball with PEI and Ontario over expanding the Canada Pension Plan into a so-called "Big" CPP.
Bill Curry and Adrien Morrow of the Globe and Mail report, With no consensus on CPP reform, Ontario pledges to go its own way: Ontario is vowing to press ahead with its own mandatory retirement pension - one that other provinces are signalling they could sign on to - after Ottawa dismissed reform of the Canada Pension Plan in the near term.
In "The Third Rail: Confronting Our Pension Failures" (2013), Jim Leech and Jacquie McNish discuss the problems with the Canadian pension system, as well as offer some solutions. The background material is international in scope, but the discussion of solutions is Canada-centric.
The Canadian retirement system is unproductive and inefficient, but how do we tame this administrative beast without toppling the entire system? Taming it requires simplicity, efficiency and uniformity, not new schemes that add complexity and cost to employing workers. To encourage savings, Canada linked retirement savings to the Income Tax Act, making it a tax-favoured activity.
Fee only/advice only financial planner at Spring Financial Planning, ex-banker, curmudgeon.
Co-host with the really loud laugh on Because Money
