The advice? Create a new and attractive savings track for Canadians who do not have workplace pensions — a benefit that is becoming increasingly rare.
About two-thirds of private-sector workers are without workplace pensions, and the number of employers offering such plans has been shrinking by the year. A 2007 study by the Canadian Institute of Actuaries also said only about one-third of Canadian households were saving at levels capable of generating sufficient income to cover non-discretionary expenses in retirement.
Mr. Georgetti said reforms should focus on future retirees.
“We should start putting in place now an adequate system of retirement savings so that the younger generation will not find themselves in the position that older workers find themselves today.”
The Canadian Labour Congress calls for a gradual doubling of Canada Pension Plan contributions over seven years to double the maximum CPP benefit to almost $22,000 a year.
CARP advocates a mandatory supplementary pension plan separate from the CPP that would allow employers and employees to build an even better retirement income.
Ms. Eng said, however, her group would support the Canadian Labour Congress proposal as a first step toward a broader reform.
Mr. Georgetti says he’s convinced the congress proposal, which is strongly opposed by banks and financial firms that sell tax-assisted savings vehicles, will win broad public support.
“It’s the cheapest of all the options, it’s the most effective, it’s indexed and it’s portable,” he said.
Keywords: pension reform
