WINNIPEG – The future of your pension is on the table at a finance ministers meeting in Vancouver today.
Canada’s finance ministers will try to hammer out a preliminary agreement on expanding the Canada Pension Plan.
Queen’s University economics professor Don Drummond tells Winnipeg’s Morning News there are a couple of ways they could do it.
“One of them is a fairly broad-based expansion. The more targeted plan is, right at the moment, your pension benefits cap out at the equivalent of an income of $54,900. The proposal is to increase that, conceivably doubling that.”
A general increase would come at a cost to you: as benefits increase, it’s a good bet that premiums taken off your paycheque will as well.
Drummond explains that at this point, most people are in decent shape pension-wise.
“Five years ago, a major study was done and it find that most people are reasonably well covered. That’s not to say everyone’s going to get a great pension.”
If changes are to be made, at least seven provinces would have to agree to it. Those provinces would have to make up at least two-thirds of the country’s population.