As the Baby Boom generation continues its long, slow goodbye from the workforce, the debate around the looming pension crisis in Canada continues, along with the number of ideas to fix the problem.
The federal government announced a proposal Thursday for a new hybrid program, called a Target Pension Plan (TPP), where the employer and employee would share the investment risk. It would have a targeted payout, but if the money isn’t there both sides would decide how to manage it. It’s a mix of the older defined benefit plans that offer guaranteed payouts and the newer defined contribution plans, where the amount you get in retirement depends on performance of the investment.
The government’s new pension proposal comes as Ontario’s government floats its own program, and as some premiers across Canada are calling for Ottawa to boost Canadian Pension Plan (CPP) premiums to help Canadians receive a bigger pension in retirement.
Then there’s the camp that believes all of the fuss aboutRead More »from Pension debate heats up as Ottawa floats TPP