Over 11 million Canadians don’t have a workplace pension. Less than 25 per cent of Canadians contribute to RRSPs, which on their own are an ineffective way to prepare for retirement. Half of middle class baby boomers won’t have a decent retirement and the problem is projected to get worse with each generation.
It is undeniable that Canada is facing a pension crisis.
For women the crisis is more severe since only 58 per cent of senior women receive income from workplace pensions or RRSPs compared to 70 per cent of senior men. Racialized workers are also less likely to have a pension plan at work.
With a modest increase to the contributions made by employers and workers, phased in gradually over several years, Canada Pension Plan (CPP) benefits could be doubled.
There is growing consensus among Canadians, provincial and territorial leaders, and pension experts, that expanding the Canada Pension Plan is the most efficient, effective and affordable way to address Canada’s pension crisis.
Expanding the CPP could provide all Canadian workers with a decent income in retirement so millions of seniors could live with dignity and out of poverty.