More delays won’t fix Canada’s retirement security crisis

May 26, 2015

Finance Minister Joe Oliver’s announcement today that he will “consult” Canadians on voluntary increased Canadian Pension Plan contributions shows the government is more worried about appearances than actually tackling Canada’s retirement security crisis, says Canada’s largest labour body. 

“We know through polling that an overwhelming majority of Canadians already support expanding the CPP through increased mandatory contributions,” said CLC president Hassan Yussuff.
“Why stall with more consultations when there is already so much consensus around the right solution for Canada’s retirement crisis?” he asked.

The CLC has long held that a voluntary scheme won’t work.

“The CPP is so successful precisely because contributions are mandatory, not voluntary,” said Yussuff. 

“Voluntary contributions would be more complicated and costly to administer, and, would leave workers behind when employers choose not to match increases,” he added.

The rate for CPP contributions was originally set up assuming that most workers would be able to supplement CPP savings with workplace pension plans. But today, two in three working Canadians – that’s 11 million workers – have no workplace pension plan.

“After a lifetime of hard work, nobody should have to retire in poverty, and unless we act now, we are going to see more and more seniors facing that future,” said Yussuff.
“This government needs to listen to what Canadians are already saying and begin a phased-in doubling of the CPP,” he added.

[[{“fid”:”416″,”view_mode”:”default”,”fields”:{“format”:”default”},”type”:”media”,”link_text”:”Worried about your retirement?”,”attributes”:{“class”:”file media-element file-default”}}]]

 

Related Articles

Let’s grasp this opportunity to shape a fair Canada for everyone

By Hassan Yussuff, as published in The Hill Times. Across the generations, our loved ones are anxious about the future. Polls show that millions of Canadians are worried about the rising cost of living, the increasing precarity of work, climate change, and so much more. The newly elected federal government has a lot to do to alleviate these types of…
Read More

Unions mark Gender Equality Week with election demands

Canada’s unions are marking Gender Equality Week 2019 by calling on federal political parties to commit to creating a fair Canada for everyone. “Gender Equality Week was created to celebrate recent gains while reflecting on the work that needs to be done to improve gender equality and women’s rights across Canada,” said Marie Clarke Walker, Secretary-Treasurer of the Canadian Labour…
Read More

Working families have a lot at stake this election

By Hassan Yussuff You can be forgiven if you’ve avoided thinking about the upcoming federal election all summer, but Labour Day is here. That means it’s time to return to the fall routine and start thinking about how you are going to cast your ballot. You may have seen politicians working the barbecue circuit, vying for the support of workers…
Read More