| The aging of the baby boom generation and increasing longevity among Canadians pose tremendous challenges to the country's retirement income programs. The system now requires current taxpayers to fund the pensions to current retirees. Many Canadians, including the country's finance ministers, argue that system would pose an unacceptably high burden on future generations, who will have to divert increasing resources to support retired boomers. Economic stagnation exacerbates the problem.; As a result, the federal government has launched major reforms of the two publicly-funded legs of the retirement income system, the Canada/Quebec Pension Plan and the Old Age Security/Guaranteed Income Supplement. The political debate has often pitted generation against generation and has led some to challenge the very essence of social security. Defenders of the pension system fear the reforms will unravel a crucial social safety net. For its part, the Liberal government insists the public pension system will be maintained. But it has sent a clear message that baby boomers will have to save more, both through the Canada Pension Plan and through RRSPs, to secure a comfortable retirement. |
