The CPP: back in the headlines

The National Post recently reported that Federal Finance Minister Morneau is looking for ways to enhance our Canada Pension Plan. It appears he may be ready for this challenge after tabling a budget that many seem to have liked.

Enhancing the CPP will require support from seven of the 10 provinces. Talks between the Minister and the provinces will resume this June.

In my view, the problem we face is twofold.

First, the numbers of Canadians nearing retirement or already in it is growing quickly. Second, too many of them have not saved enough, especially if they live as long as the current life expectancy statistics suggest.

Such a drop in overall purchasing power in a large part of the population will not bode well for our economy, not to mention the potential numbers of older Canadians who will suffer in poverty.

What might an enhanced CPP look like?

Very hard to tell, but I have to assume that it will no longer involve all of us getting the same amount, but instead higher amounts going to those with the lowest incomes. Stay tuned.

This ad ran in the Richmond News on April 1, 2016.