Is the ORPP needed?

The Ontario Retirement Pension Plan (ORPP) is based on the “faulty assumption” that most residents of the province aren’t ready for retirement, says the Fraser Institute’s Charles Lammam in a Financial Post opinion piece.

He says the current retirement income system serves the vast majority quite well.

“Among the current cohort of retirees, the problem mainly affects single seniors living alone with minimal work history,” Lammam writes. “The Ontario Retirement Pension Plan does nothing to help this group.”

He claims the provincial government ignores Canadians’ access to savings in non-government programs, such as RRSPs, registered pension plans, tax-free savings accounts and their homes.

Lammam also says the ORPP is based on other faulty assumptions, such as voluntary savings programs are underused and longevity is contributing to a retirement crisis.

Read the full article on the Post’s website.

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