Labour movement leads call for better pensions

We need to do something about retirement income, and we need to do it now. People cannot save enough for retirement and we are going to see growing poverty among retired seniors. Even bank economists have started to say RRSPs have failed. There is too much risk and not enough security to ensure that, after a lifetime of work, people can retire and live out their last years in dignity.

Too many of todays seniors live in poverty and too many older workers are realizing their retirement plans have come up short because the investment returns they were promised never materialized or they simply could not save enough on their own. Young people are graduating with high levels of student debt and going into jobs where workplace pension plans aren't being offered. The financial services industry pays itself juicy fees to manage your money and that eats up a big part of your potential retirement savings - if you have any retirement savings left when you are ready to retire, after the roller coaster dips and dives of the stock market.

The best way to help todays workers save enough money for tomorrow is by having Canadians get more of their retirement income from the Canada Pension Plan (CPP). The CPP covers over 90% of Canadians with jobs - almost the entire work force. The CPP follows you from job to job across all the provinces and territories, and it keeps up with the cost of living. Your benefits are paid out right up until your death. Even self-employed people can get CPP. It's a defined benefit so you know what you will get when you retire, no guesswork or worrying about the performance of the stock market.

The CPP is financed exclusively by workers and their employers, not by taxes, and it is run independently from the government. This means seniors in the future won't have to depend on government tax revenues or their company's stability to pay for their pension. Best of all, the CPP's management costs are vastly lower than those charged by the banking and mutual fund industries.

Expanding the CPP would mean Canadians would have safer pensions. They would not have to worry about losing their pension savings to higher inflation, stock market scams, or because they lose their jobs. Expanding the CPP is about preparing for our future, and leaving behind a better system for our kids. Canada's financial sector charges some of the highest fees in the world. Why give your savings to them?