Most Canadians support expanding CPP: poll

VANCOUVER (NEWS 1130) – Are you prepared to lose a bigger chunk of your paycheque?

As the country’s finance ministers gather in Vancouver today to try to reach a preliminary agreement on expanding the Canada Pension Plan, a poll finds three-quarters of Canadians would support a move to increase benefits.

The Angus Reid poll also suggests a majority (75%) of us feel the federal government should play a lead role in Canadians’ plans for funding retirement.

One-in-six respondents say CPP contributions should be “significantly” bolstered.

However, a right-leaning policy group argues the push to expand the plan is based on “incorrect assumptions” on what that would mean for Canadians.

A study from the Fraser Institute lists a number of what co-author Charles Lammam calls myths.

“The evidence shows that most Canadians are, in fact, well prepared for retirement. The opposing view tends to overlook all of the resources that Canadians have upon retirement,” Lammam tells NEWS 1130.

“They have money saved in stocks, bonds, personal investments and even real estate that they can tap into when they retire. When you account for all these resources, it is abundantly clear that most Canadians are well prepared for retirement.”

Lammam also argues that “forcing” Canadians to put more money into CPP would mean less money for private pensions. “That’s what happened when Canada expanded the CPP back in the 1990s and early 2000s. For every dollar that went into the CPP, about a dollar less went into private accounts.”

“That matters because with private savings you have a whole host of benefits that are not available through the CPP. You can tap into your private savings during your working career if you want to use some money for a down payment on a home or upgrade your education.”

More importantly, says Lammam, all the money can be passed on to a beneficiary when you die. “You can’t do that with the CPP. There’s less flexibility and less choice”

Lammam also asserts that expanding the CPP will not help financially vulnerable seniors. “Canada’s most financially vulnerable seniors will gain little or nothing from an expanded CPP partly because many have not contributed to the CPP and are therefore not eligible to receive CPP retirement benefits. If we expand the program we are not going to help them in any meaningful way.”

Today’s talks on CPP expansion come out of concern that future retirees may not have enough savings.

Any changes to the Canada Pension Plan would require the consent of at least seven provinces, representing two-thirds of the country’s population.

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