There is no reason why working Canadians should have to watch their retirement options deteriorate. This week in Whitehorse, our finance ministers can take the first steps toward creating a retirement security system that will work for all Canadians.
We can fix Canada’s pension crisis by strengthening the Canada Pension Plan with a phased-in doubling of how much we pay in, and how much we get out in retirement. This would offer secure and enhanced pension benefits for the 93 per cent of Canadians who make CPP contributions.
A gradual, doubling of CPP benefits would provide a universal pension plan, at a decent income level, one that would not penalize workers who change jobs. Further, as the CPP actuary has said, it is a secure plan through 2085, long after the current wave of baby boomers retires, and would provide a stable future for the next generation of workers.
We can also enact better legislation to protect existing workplace pension plans from bankruptcy, high-risk investments and underfunding from employers. This year, Canadians watched Nortel employees fight their bankrupt employer for severance packages, pensions and disability payments – with no guarantee they will be paid. Our finance ministers can make sure this never happens again.
The retirement future of this generation and the next deserves more than a series of discussions. These talks should lay the groundwork for comprehensive pension reform so that the working men and women who helped build our economy can retire with the security and dignity they deserve.
Keywords: poverty, pension reform, retirement, boomers
