Retirement Income System Consultations Spring 2010 (The following, with minor changes, was sent as input to Canada’s Department of Finance request for input on Retirement Income System reform.) The current Pillars 1 and 2 (CPP/OAS/GIS) work adequately for population earning less than median Canadian incomes. Pillar 3, the DB and DC/RRSP system, which is the […]

Ontario pension reform: What really needs to be done! Reform proposals? On August 24, 2010 Ontario Minister of Finance Duncan tabled proposed reforms. These ‘reforms’ can be best described as tinkering, rather than grabbing the bull by the horn in an effort to tackle the fundamental changes that Canadian pensions, now in systemic failure, really […]

Patrik Marier- IRPP Study: Improving Canada’s retirement saving- Lessons from abroad, Ideas from home Summary Patrik Marier in the IRPP study “Improving Canada’s retirement saving- Lessons from abroad, Ideas from home”indicates that “Until now Canada’s retirement income system has done well in alleviating elders’ poverty and helping workers maintain their standard of living in retirement. […]

Feedback on “Securing Our Retirement Future: Consulting with Ontarians on Canada’s Retirement Income System”     Peter Benedek, CFA, RetirementAction.com Recommendations- Highlights Of Canada’s three-pillar retirement income system, only Pillar 1 (OAS/GIS) is doing its job of minimizing seniors’ poverty. Pillar 2 (CPP/QPP) is failing due to very low replacement targets and low earnings ceilings, thus dramatically […]

(Originally posted Dec 21, 2010; re-hosted in March 2012) In a nutshell Given the limited granularity available in the PRPP (Pooled Retirement Pension Plan) announcement, we must conclude that this is an agreement to do nothing, except perhaps a handout to the financial services industry at the expense of the average Canadian. By taking advantage of […]

Is the CPP low cost? No it’s not, but its existence can enable ultra-low-cost expanded-CPP or PRPP In a nutshell Current CPP cost is not low at 1.32% of assets (2010 fixed administrative costs=0.61% and investment related costs=0.71%) on an absolute basis, however on a relative basis it is much lower than what typical retail […]

OAS vs. Pension Reform Much ink has been spilled in the past couple of weeks on unspecified planned changes to the Canada’s Old Age Security system. Experts, fear mongers, protesters, advocates and politicians have come out arguing for changes ranging from ‘no change at all’ the way to ‘doing away with the OAS system completely’, […]