Leading the Way for Retirement Security
Premier Wynne Calls for Enhancement of Canada Pension Plan
The Ontario government is calling for an enhancement of the Canada Pension Plan, leading the way on a national issue to ensure that people across the province are better prepared for retirement.
Premier Kathleen Wynne met today with Brampton couple Tommaso Altrui and Serena Bird to discuss how further enhancements to the retirement income system would give them greater financial security in retirement.
The government is committed to a strong and secure retirement income system that helps people plan for their retirement, whether they rely on income primarily provided through the Canada Pension Plan (CPP), their own savings, or through a pension plan at work.
Investing in people, including ensuring they have a safe and secure retirement, is one of the three pillars of the Ontario government's economic plan. Through the other two pillars, the government is also investing in infrastructure and supporting a dynamic and innovative business climate.
- Many people in Ontario today are having difficulty putting aside sufficient savings for retirement and are worried about their future financial security.
- Experts suggest that households should aim to replace 50 per cent to 70 per cent of their pre-retirement income in retirement. Research shows middle-income households are at increased risk of being unable to meet this target.
- In a recent study, CIBC World Markets found that, in the absence of policy change, nearly six million workers in Canada, particularly younger workers, will experience a significant decline in living standards when they retire.
- Provincial and territorial Finance Ministers are meeting in Toronto tomorrow where CPP enhancement will be on the agenda.
- Changes to the CPP require agreement of the federal government and at least seven provinces having at least two thirds of the population.
“We are pushing for an enhancement to the CPP so the hardworking people of Ontario have the support they need when they retire. I am confident that the federal government can work with Canada’s Premiers toward a solution, but we are also prepared to move forward with a made-in-Ontario plan if necessary.”
“Governments must ensure a reliable and responsible retirement income system that responds to the new realities of our times. That's why our government is leading the discussion to find a Canada-wide agreement on a Canada Pension Plan enhancement and strengthen income security for middle-class Ontarians. We're also working to improve workplace pension plans and those accumulating savings independently. Countless experts agree that to enhance and protect retirement income for Ontarians, we must act now.”