All stakeholders—government, unions, business and citizens—need to focus on cooperating to achieve a sustainable system to fund pensions in the future.
“We are now at a critical juncture for our retirement system. The actions we take now will have a profound impact on Canadians for the rest of this century,” said Bill Morneau during a panel discussion at the Financial Executives International (FEI) Conference in Niagara Falls, Ont. on Friday.
“It’s vital for us to work together to achieve a sustainable system that will ensure our children and theirs a prosperous, secure retirement.”
Over the next 20 years more than seven million Canadians will exit their jobs for retirements that will last longer than anyone anticipated, added Jim Leech, former president and CEO of Ontario Teachers’ Pension Plan.
“The majority of these retirees do not have pensions or sufficient savings,” he said. “Now is the time to work together to fix our ailing pension programs.”
They also shared their perspectives on the future of pensions in Canada and how important it is for organizations to plan accordingly to fund their retired workforce.
“Employers can play an important role by engaging and enabling employees to save in cost-effective vehicles that will assist them to meet their retirement goals,” Morneau explained. “Easing retirement anxiety through prudent planning can improve productivity and create a more effective workforce.”
Inadequate or unsustainable pensions represent a huge financial challenge, Leech added.
“Private and public sector employees will have dramatically different outcomes in the future,” he said. “The decisions we need to make now are about re-balancing and sharing the risk between employer and employee.”
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