The middle class retirement income problem - The case for a voluntary pension plan
July 22, 2010 @ 11:00AM
There is a looming shortfall of retirement income for lower middle and middle class Canadians, according to Prof. Norma Nielson, who has called on regulators to carefully consider the role of government in providing a new way for Canadians to save for retirement.
In a research paper released today by The School of Public Policy entitled “Should Government Facilitate Voluntary Pension Plans?,” Nielson examines the benefits of creating a regulated Voluntary Pension Plan (VPP) that would allow earners and employers to contribute to a large, co-mingled investment pool. The VPP would face the same regulation as employer sponsored pensions (RPPs), but would bring the benefits of being able to invest in a wider variety of instruments to a wider audience, thereby mitigating risk.
“The current pension system in Canada, while protecting many employees, is sufficiently complex that it serves as a barrier to middle-class individuals, especially those who work for small- and medium-size employers , says Nielson, a Professor in the Haskayne School of Business. “The VPP could be a solution that allows professional investment services to be more readily accessible to solve what is solidly a middle-class Canadian problem.”
Nielson’s review of recent research argues that the CPP and other programs provide adequate retirement income for low income earners, and that high income earners use the opportunities they are afforded under the current system to save and invest adequately for retirement. However, those in the middle do not have sufficient disposable income to adequately save enough to provide a middle class retirement.
A copy of the paper is available at www.policyschool.ca, by linking to Recent Publications.
Prof. Nielson is available for media interviews today, by appointment. For more information or to schedule an interview please contact:
Morten Paulsen
Phone: 403.399.3377
Email: morten@paulsengroup.ca
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@njaffer87
RT @UCalgary: Canada should start a national voluntary pension plan to promote retirement savings, \naccording to new study: http://tinyurl.com/37nsyb9
July 22, 2010 @ 05:26PM
@vincentwhite
U of Calgary - School of Public Policy: The case for a voluntary pension plan http://tinyurl.com/37nsyb9 #cnw
July 22, 2010 @ 05:22PM
@UCalgary
Canada should start a national voluntary pension plan to promote retirement savings, \naccording to new study: http://tinyurl.com/37nsyb9
July 22, 2010 @ 05:03PM
@CNWGroupSMR
The middle class retirement income problem - The case for a voluntary pension plan http://goo.gl/fb/5foNe
July 22, 2010 @ 03:11PM
@gwsa
The middle class retirement income problem - The case for a voluntary pension plan http://tinyurl.com/37nsyb9 #cnw
July 23, 2010 @ 06:54PM
CanadianInvestor
Some interesting points in the paper, like noting the longevity risk sharing. I found it a difficult read - I'd suggest getting a non-financial editor to go through it to make it flow better. How do actual admin / management overheads of RRSPs amount to only 92 bps (p.5) when most individuals invest in mutual funds where typical equity funds charge 2.5% MER (250 bps)?
August 03, 2010 @ 12:34PM
sblouin55@hotmail.com
Everybody working, contract, part time and anyways, should have a pension and put the money in their pension plan the plan should be a % of their wage and go directly to their plan whith the obligation to leave it there till retirement . If the co. fail to put the money in the plan they are billed double .Terminal illness or health concern will be the only way to use the money they should be able to have their way to place in their favorite plan or invest it their way and put more in the plan if they want. If I received some spam or add I will bar you as an indesirable .
October 21, 2010 @ 10:02AM
@CNWGroupSMR
The ethics of biofuels http://goo.gl/fb/k8GE6
December 15, 2010 @ 11:42PM
@njaffer87
RT @UCalgary: Canada should start a national voluntary pension plan to promote retirement savings, \naccording to new study: http://tinyurl.com/37nsyb9
July 22, 2010 @ 05:26PM
@vincentwhite
U of Calgary - School of Public Policy: The case for a voluntary pension plan http://tinyurl.com/37nsyb9 #cnw
July 22, 2010 @ 05:22PM
@UCalgary
Canada should start a national voluntary pension plan to promote retirement savings, \naccording to new study: http://tinyurl.com/37nsyb9
July 22, 2010 @ 05:03PM
@CNWGroupSMR
The middle class retirement income problem - The case for a voluntary pension plan http://goo.gl/fb/5foNe
July 22, 2010 @ 03:11PM
@gwsa
The middle class retirement income problem - The case for a voluntary pension plan http://tinyurl.com/37nsyb9 #cnw
July 23, 2010 @ 06:54PM
@CNWGroupSMR
The ethics of biofuels http://goo.gl/fb/k8GE6
December 15, 2010 @ 11:42PM