Fear is Robbing Canadians of Secure Retirements
This Simple CPP/QPP Tweak Can Change That
A small, low-cost adjustment could significantly change how Canadians decide when to start their CPP/QPP pension benefits.
The Hidden Retirement Crisis
Canada faces an emerging retirement issue. Traditionally, attention has focused on low-income seniors, but the next group of retirees—referred to as the Vulnerable Massive Middle—are heading toward a different kind of insecurity. They have worked hard and saved, yet lack the stable workplace pensions their parents enjoyed.
Over 60% of Canadian workers have no workplace pension. In the private sector, 90% are without the defined-benefit plans that once guaranteed steady income for life. This leaves millions facing longer retirements with fewer family supports, increasing health and long-term care expenses, and no reliable lifetime income beyond the CPP, QPP, and OAS.
Impact and Consequences
The Vulnerable Massive Middle is projected to become more than one-third of Canada’s future older population. Studies consistently indicate they are on the path to a retirement crisis. The effects extend beyond individuals, affecting the nation by increasing reliance on income-tested programs, straining health budgets, and causing more adult children to leave work to care for elderly parents.
Built-In Solutions
Fortunately, Canada already offers a key solution: the option to delay CPP/QPP benefits to increase retirement security.
“More than 60 per cent of Canadian workers have no workplace pension. In the private sector, 90 per cent lack the gold-standard defined-benefit plans that once ensured stable income for life.”
“The Vulnerable Massive Middle will make up more than a third of Canada’s future older population. Without change, study after study shows they’re heading toward a retirement crisis.”
Author’s summary: Many Canadians face insecure retirements due to missing workplace pensions, but a simple CPP/QPP delay option could strengthen their financial futures.