The Standing Senate Committee on Banking, Trade and Commerce calls for changes to Canada’s retirement savings system

October 22, 2010

A new senate report called Canadians Saving for their Future: A Secure Retirement has just been tabled by the Standing Committee on Banking Trade and Commerce, it calls for changes that can be made to improve savings vehicles in Canada. It makes a number of recommendations including the creation of a Canada-wide voluntary plan that would enable Canadians to benefit from the lower fees and shared risk that may result from membership in a group. The voluntary plan would help bridge the gap that the committee perceives exists between those without and those with an occupational pension plan as well as help bridge the gap that exists between public sector and private sector pension plans. The report also recommends the federal government establish lifetime inflation-adjusted contribution room of $100,000 in Tax Free Savings Accounts (TFSAs), in addition to the existing $5,000 annual contribution that is currently allotted. To read the Committee’s Press Release, please click here

Keywords: pension reform