Ms Susan Scotti. Assistant Deputy Minister. Canada Dept of Human REsource and Social Development

The number of seniors by2041, 25% of Canadians will be ‘seniors’. It is a nation of rapidly aging workforce. The Canadian Retirement System is a vital part of allowing its citizens to retire gracefully. OAS is a first tier system for all seniors in the country. There is then a guaranteed income supplement for those who have next to nothing. And finally there is a couple’s allowance. This is all funded thru taxes. CPP is the second part of the system. This is the mandatory Canadian plan. There is a measure of protection thru this program. 25% of average industrial wage. The risks and responsibilities are shared by the govt, the firms and the individuals. The third part is the private savings plans. About 40% of employees are covered by benefit plans. All three tiers are important to allow a base income to exist to support the elderly after retirement.

The shrinking labour force is potentially putting a strain on the program. However, it was assured that the program. The number of beneficiaries will double over the next 25 years or so. They have created a separate pension fund which is held at arms length to ensure that there is responsible investments.

It is interesting to see that they are so sure that their plan is secure. I hope that they are right.