Ottawa – June 13, 2016 – When the federal and provincial finance ministers meet later this month, they will be discussing whether or not to expand the Canada Pension Plan (CPP), as promised by Justin Trudeau’s Liberal Party in the last federal election.
Contrary to popular belief, expanding the CPP is entirely possible. What it requires is the political will of the federal government, as well as the support of seven provinces that represent at least two-thirds of the Canadian population.
Pension experts widely support an expansion of the CPP – which would allocate higher benefits to retirees in the future – as the best and most secure way of providing an adequate income in retirement.
The CPP was established in 1966 as a modest pension plan with the expectation that employers would continue to provide pension plans for their employees. But only one in eight private sector workers currently contribute to a traditional defined benefit plan, and very few if any new plans are being established.
So there is a pension crisis in Canada. More than 11 million Canadians have no workplace pensions and more and more seniors are finding that they don’t have the savings to get through their final years.
After working most of their lives, Canadian seniors should not be living in poverty upon retirement. They should be able to enjoy the fruits of their labour in their latter years, and the best way of guaranteeing a secure retirement income for all retirees is by expanding the CPP.
When the finance ministers meet later this month, they should not waste any time in moving to expand the CPP so that Canadian seniors can live with dignity in their retirement.