| There was a recent eye-opening announcement | | | | payroll tax and it's a job killer." |
| from our American neighbours, that almost 3 | | | | Quebec's minister of employment Sam Hamad, |
| million Americans have been forced to claim their | | | | wanted to take a 'wait and see' approach, saying, |
| retirement pensions earlier than expected. That | | | | "We aren't for or against what is proposed, |
| means a few things when it comes to their | | | | however, there are questions on the table and |
| financial security. | | | | we need to address them as soon as possible. |
| One, by claiming their pension several years | | | | These proposals came on Thursday and we will |
| before they are eligible to get a full pension, they | | | | take the time to look at them." |
| are only receiving a partial pension. Living on a full | | | | Other CPP reform supporters like Ken Georgetti, |
| pension is not always do-able, which is why so | | | | president of the Canadian Labour Congress feels |
| many financial advisors hammer home the need | | | | that the current CPP benefits should be doubled. |
| to save that retirement nest egg as soon as you | | | | The National Union of Public and General |
| can. | | | | Employees union has figured that approximately |
| Applying for a retirement pension years earlier | | | | one-third of retiring Canadians are doing so with |
| than expected also means people stand a chance | | | | only their Old Age Security as well as their CPP |
| at running out of funds before they planned. | | | | benefits, which has them living on about $17,000 a |
| However, Canadians are concerned with the level | | | | year. |
| of CPP they will eventually be collecting as well, so | | | | Before the reform can move forward, at least |
| the government has stepped in and offered a | | | | two-thirds of the provinces that would be |
| pension plan reform. It will see a gradual, yet | | | | representing at least two-thirds of Canada's |
| moderate expansion of the CPP. This means that | | | | population would have to agree. By the time the |
| Canadians could be adding more money now to | | | | young working class and post-baby boomers |
| their eventual government retirement plan. | | | | retire, the cost of living will most likely be a lot |
| However, some are concerned that if the | | | | more, maybe even double what it is today. |
| younger working class, as in the post-baby | | | | Saving extra money beyond the government |
| boomers, begin to contribute more, they will be | | | | programs is always beneficial long-term, however, |
| paying more into the program than they will get in | | | | it is hard to do when mountains of monthly bills |
| return when it comes time for them to retire. | | | | keep you from seeing clearly. |
| There are other voiced concerns such as that of | | | | Getting all those bills made into one easy payment |
| Alberta Finance Minister Ted Morton, "We think it's | | | | each month can be done with a consolidation loan. |
| a gross overreaction and that the problem of | | | | There are many private lenders who even |
| underfunding is limited to a small sector of the | | | | specialize in providing such loans to clients with bad |
| Canadian workforce and that CPP expansion hits | | | | credit. When traditional banks are not an option, a |
| everybody. Secondly, we think CPP is a form of | | | | private bad credit loan may be the solution. |