The Ontario government is now offering key details about a "retirement pension plan" meant to bolster the incomes of the growing number without private plans through work.
The budget confirms that the proposed pension plan would rely on equal contributions from workers and employers and could be incorporated into the CPP with fed approval.
Premier Kathleen Wynne has argued the plan as a the best workaround the federal government's decision to keep its pension plan as is and not to beef up contributions. The move is not without controversy
Advisors themselves have been divided on the need for a provincial plan, although they've seen the quick erosion of private benefit plans across all levels of the corporate structure.
The government points to more than 50 per cent of working Ontarians without employer pension plans. It's a growing phenomenon that is expected to increase reliance on government support in retirement.
Ironically, some advisor clients may not lean on the CPP enough.
“I would say that the CPP benefits provide an important, but not an essential element to their retirement security,” explains Rona Birenbaum, one of WP's Top 50 Advisors. “Without it, they would have to go without some of the comforts of retirement.”
The cost of snubbing the CPP
