Sixty percent of Canadians (sixty-two percent of Nova Scotians) do not belong to any pension plan and most of them do not have any RRSP savings either. In Pensions in Crisis, Bill Black of www.newstartns.ca suggests that the government must take steps to ensure that pension promises are properly managed, and their funding properly protected. It also has to take steps to encourage greater participation in retirement savings programs.
But Black maintains that this will only work if taxpayers have enough money left to save for an adequate retirement.
There has been considerable recent publicity concerning the level of pensions provided in the public sector compared to what is available to private sector employees. Hard pressed taxpayers will be unwilling to support programs that are dramatically more favorable and more expensive than they themselves have.
Going through several “big” public pension plans, Black identifies where the government could find savings. Pensions in Crisis contains three updates: May 2010, June 2010, and February 2011. Included also is Black’s conversation with Nova Scotia Finance Minister Graham Steele.
Click here to read the full commentary.
