Private Savings
SIMA’s retirement-savings action plan
Canada’s retirement-income system was built decades ago on foundational pillars, including:
- government-funded programs, such as Old Age Security (OAS) and Guaranteed Income Supplement (GIS)
- public retirement plans, such as Canada Pension Plan (CPP) and Quebec Pension Plan (QPP)
- workplace pensions, including defined benefit (DB) and defined contribution (DC) plans, and private registered savings, such as RRSPs and TFSAs, and
- non-registered personal savings and other investments
Over time, the balance among these sources has shifted to the point where today private savings contribute almost half of retirement income for Canadians aged 65 and older. But saving has never been harder. Inflation, housing costs, stagnant wages and household debt are leaving many Canadians with little room to put money aside.
Public policy hasn’t kept up with the changing environment. It’s based on assumptions from decades ago about when people retire, how long they live, and what kind of support they have through their working years. The disconnect is creating real risks.
That’s why SIMA has produced a retirement-savings action plan to address these concerns.