New report says Canadians need better options to save for retirement

CPP changes, nudge options, private sector savings reforms among recommendations from National Pension Summit in New Brunswick.

OTTAWA, Aug. 9, 2013 /CNW/ - A new report says Canadians need better options to help them achieve a secure retirement income, and that leaders from all sectors—public, private, and labour—must work together to make pensions more sustainable and flexible.

The report summarizes discussions and recommendations from the recent National Summit on Pension Reform, held February 19 and 20, 2013 in Fredericton, NB. Jointly organized by the Government of New Brunswick and Canada's Public Policy Forum, the Summit examined issues such as pension sustainability, inter-generational equity, and the private sector savings gap. The stimulus for the event was New Brunswick's new "shared risk" pension model, which was developed collaboratively with union leadership and distributes risks and rewards more evenly between sponsors and members.

"This report serves as an important summary of the excellent ideas and strategies which were raised during the Pension Summit to deal with the looming challenges facing retirement income security and pensions." said New Brunswick Premier David Alward. "While many potential solutions were discussed during the Summit, including the innovative pension model we have developed in New Brunswick, there was broad consensus that the status quo is no longer an option and that legislators must show leadership to ensure sustainable retirements for our citizens."

Canada has historically been a world leader in pension stability. But with an aging population placing increasing demands on both public and private pensions, fewer younger workers, and a yawning gap between public and private pensions, many Canadians are worried about their retirement income.

The Summit convened more than 220 experts from the private, public, academic and labour sectors for an open discussion. Participants identified several key policy directions and leadership actions from all areas to improve the long-term outlook for Canadian pensions, including:

• Improved options for individuals and employers to help close the private sector savings gap
• Building nudge or default options into government savings vehicles to make it easier for Canadians to save
• Research into expanding or modifying the CPP, and further study of the shared risk pension model
• Continued multi-sector dialogue on retirement income security
  

"The Summit offered an unparalleled opportunity to start an important conversation about pensions in this country," said David Mitchell, President and CEO of the Public Policy Forum and co-chair of the Summit. "It's clear that there is much more work ahead, and that the reflection and discussion we launched must continue. We look forward to a sustained national leadership dialogue on pension reform in Canada."

To read the full report, and to view speeches and presentations from the Summit, visit www.ppforum.ca/pension-reform.

The Public Policy Forum is an independent, not-for-profit organization dedicated to improving the quality of government in Canada through enhanced dialogue among the public, private, academic and non-profit sectors.

SOURCE: PUBLIC POLICY FORUM

Natasha Gauthier
Director of Communications
Public Policy Forum
[phone], ext. 220
[email protected]

Brendan Langille
Director of Communications
New Brunswick Department of Finance
[phone]
[email protected]