The steering committee of provincial finance ministers has released its report on the adequacy of retirement income and its proposals for improving pension plan coverage in Canada.
The committee found that the income of current retirees is fairly adequate. The income of future retirees, however, is unlikely to be adequate due to declining pension plan coverage and inadequate personal retirement savings. The report suggests two possible solutions. The first solution is the implementation of a Canada Supplementary Pension Plan, a voluntary defined contribution plan for those employees not currently covered by an employer retirement plan. The second solutions is to expand Canada Pension Plan and Quebec Pension Plan benefits by increasing employee and employer contributions.
For more information on the steering committee’s report, please see Heenan Blaikie’s Pension Pulse “Canada’s Pension Pillars in Need of Repair: Report of Provincial Finance Ministers”.