We can no longer ignore it. The retirement benefits system in Canada is fundamentally flawed.
Canadian seniors are financially vulnerable because of the lack of substantial retirement benefits. Statistics Canada estimates that the number of people over the age of 65 is poised to double by 2036 to the point where people aged 85 and over are now the fastest-growing subset of the population.
If you’re as frustrated with the state of things as we are, it’s time to turn that frustration into action. On October 21st, vote Canada’s Fourth Front. We’re a newly recognized federal party with a 5-year plan to improve the retirement benefits of our ageing population. Our mission is to create a separate pool of cash to take care of seniors after retirement and more importantly, bump up this pool every year to keep up with the alarming inflationary trends.
By as soon as 2030, it will take 3 working Canadians to support 1 senior. As the ageing population rises, more and more people are entering their senior years very poorly-equipped to support themselves.
This should serve as a warning sign to policymakers, but so far, it’s has been relegated to the backburner. The abysmal lack of senior benefits in Canada is a huge crisis and needs to be addressed IMMEDIATELY.
Consider this. Two-thirds of the people in Ontario alone have repeatedly voiced concerns that they won’t have enough money to retire on. Without a stable pension plan or substantial private savings, it is estimated that Canadian seniors will fall victim to poverty, rendering them unable to make ends meet.
Many rely on Canada’s Pension Plan (CPP) to aid their post-retirement spending. In reality, this isn’t sufficient to bridge the gap created by the decreasing workplace pension coverage. The maximum monthly CPP is about $1,134, with the average monthly payment being only $629.
Even factoring in Old Age Security (OAS) and Guaranteed Income Supplement (GIS) these provide about $15,000 annually for single seniors and $25,000 for spouses. Again, these figures aren’t nearly high enough to sustain the cost of living in a country like Canada where inflation rises by 2% every month, and food prices have risen by 200%.
Does this imbalance make you uneasy? It should. Without workplace benefits, Canadians will have to bolster their income with private savings such as the registered retirement savings plan, and tax-free savings accounts. This, in and of itself, is a Catch 22, considering that Canadians don’t have enough savings in the first place to invest in these programs after paying their essential monthly expenses.
Policymakers have proposed to increase CPP benefits, however, that is an ill-thought-out method to aid retirement spending. Think about it. There are seniors who have not worked or have worked very little, contributing not as much to CPP. These contributions are a vital determining factor when it comes to the amount of benefits received. Expanding CPP won’t help seniors who have an insufficient work history.
Another important point to consider. Even low-income seniors who have contributed sufficiently to the CPP will not see any significant increase in their total income. This is because there are bound to be cutbacks in other benefits like the Guaranteed Income Supplement.
Given how our current government retirement benefits are laid out, there’s simply no winning for low- to middle-income seniors.
Between 1995 to 2015, we saw the re-entry of retired Canadians into the workforce as well as those working past the retirement age in order to combat growing poverty rates.
There was a 96% increase between 2006 and 2013 in the number of seniors that rejoined the workforce.
The decision to retire and stay retired has been completely taken out of our hands. Also, we can’t forget those seniors who cannot re-enter the workforce even if they wanted to due to old-age illnesses, especially arthritis and rheumatism.
The economic consequences of this reality are immense. Think about the fact that seniors will not be able to take part in activities that benefit the economy because of their income status.
In fact, it was proven that a majority of retirement benefits paid by the government to seniors eventually find their way back to the economy in the form of senior spending, thus producing growth and employment, and lest we forget, revenues for all levels of government.
The future is NOT bleak. We have immense power to change the current state of things. On October 21st, we invite you to vote CFF and join a revolutionary movement to improve retirement benefits, provide jobs for our educated youth, and increase the welfare of our veterans, farmers and natives.
Are you tired of empty promises from the people in power? As are we! Canadians have to realize that it’s no longer a battle between Conservatives and Liberals. The “little guys” will bring about more positive change than either of these two parties has bothered to do during their respective incumbencies.
Canada’s Fourth Front has created a comprehensive plan, carefully formulated through the input of Canadians like you over our party’s lifespan.