Canadian Pension System at a Critical Juncture

By Sandrine Champigny | June 12 2014 09:26PM

In a panel discussion at the Financial Executives International (FEI) conference in Niagara Falls on June 6, Bill Morneau, executive chair of the Morneau Shepell human resources consulting firm and Jim Leech, former president and CEO of the Ontario Teachers' Pension Plan, discussed the current pension landscape in Canada. Both expressed concern and said that the system needs to be enhanced.

"Over the next 20 years more than seven million Canadians will exit their jobs for retirements that will last longer than anyone anticipated," commented Mr. Leech. "The majority of these retirees do not have pensions or sufficient savings. Now is the time to work together to fix our ailing pension programs."

Morneau suggested that the Canadian retirement system is at a critical juncture, and that the actions taken today will have a profound effect that will last for the rest of this century. "Employers can play an important role by engaging and enabling employees to save in cost-effective vehicles that will assist them to meet their retirement goals," he said. "Easing retirement anxiety through prudent planning can improve productivity and create a more effective workforce."