Many Canadians are entering retirement without adequate savings. This in spite of statistics showing that the number of Canadians aged 65 years and older is higher than those aged below 14 years. A 2016 report by the Broadbent Institute shows that half of Canadian couples aged between 55 and 64 years have no employer pension between them. Out of those only less than 20% of middle-income families have saved money enough to supplement the benefits they expect to receive from the Canada/Quebec Pension Plan and the government. As such, the government has a role to play y using all the available statistics and data to act by creating stronger state pension schemes as well as strengthening the working population in addition to direct interventions such as strengthening private pension schemes in order to encourage more Canadians to save for their retirement.
The government has adequate statistics to work with in drawing up plans for people to have comfortable retirements. In light of the country having more people heading or in retirements, the government can support them by strengthening the country’s workforce which generates money to support the retirees. The government can stir the workforce by increasing its productivity through education whereby children aged below 14 years as well as all those schooling get the best education. The government may for instance support in offsetting tuition fees as learners cater for other educational requirements. The government may also come up with proper policies to allow young immigrants into the workforce which helps to meet the taxation demands.
The government has all the structures and the resources to not only make legislations and implement them to the letter. As such, it is possible for the government to improve the current Canada Pension Plan and support private pension companies. The CPP ought to be enriched with the conservatives led by Stephen Harper supporting this issue by suggesting increment of CPP premiums and benefits. When people are lured by bigger benefits they are likely to save more. Since contributions to the CPP are made by employers and employees there is need for better structures to ensure that all returns are made in an efficient manner. The government may also adjust the taxation upwards to obtain money to channel to pension schemes such that people will be indirectly lured to saving more through their taxes.
The government has largely been inactive in supporting Canadians to save for their retirement. The government of Justin Trudeau has not done anything to beef up the Canada Pension Plan. “They are not even bothering to make empty promises about doing anything.” . However, the differences between governments explain their conduct and that of the federal government. For instance Quebec and Alberta were opposed to the CPP reforms while other places such as Ontario supported. The Harper conservatives have shown inconsistencies and have hampered the CPP reforms.
There are some places where governments have put in places solid measures to address the pension deficits. People not enrolled in a sizeable workplace pension plan will be phased into the Ontario Retirement Pension Plan (ORPP) between January 2017 and January 2020. The people placed into the ORPP will start to enjoy benefits in 2022 for those who will be aged 65 and older. These among other solid measures, plans and timeframes within which things are to be done regarding pension will safeguard the retirement of our senior citizens.
References
McCarthy, S. (2016, February 16). Many Canadians entering retirement with inadequate savings, study says . Retrieved July 16, 2016, from http://www.theglobeandmail.com/globe-investor/retirement/retire-planning/many-canadians-entering-retirement-with-inadequate-savings-study-says/article28761394/
Moneysense Staff. (2015, August 11). Ontario pension plan to launch in 2017, payouts in 2022. Retrieved July 16, 2016, from Money Sence: http://www.moneysense.ca/save/retirement/pensions/orpp-to-launch-in-2017-payouts-in-2022/
Walkom, T. (2015, December 23). Trudeau government wimps out on Canada Pension Plan reform: Walkom. Retrieved July 16, 2016, from https://www.thestar.com/news/canada/2015/12/23/trudeau-government-wimps-out-on-canada-pension-plan-reform-walkom.html
Warren, J. (2015, December 26). Canada’s biggest news story? Demographics . Retrieved July 16, 2016, from http://www.torontosun.com/2015/12/26/canadas-biggest-news-story-demographics
