Does Ontario Need an Additional Pension Plan?
It almost seems like every Political party feels that they have to come up with some new and unique idea to make a mark for themselves. With our current Ontario Liberal government the new buzz is going to be around their potential planning for a new old age pension for Ontarians.
They are promoting it as their way of looking towards the future and what the living status of retirees will be like in years to come. They may have a good point because it’s common knowledge that the seniors of today are not finding living expenses easy to cope with, so when cost of living rises there will be a real crisis.
The thing is there are options for those in the workforce to take advantage of private retirement plans, but it isn’t an option that many seem to embrace. Probably because they are just making enough money to live comfortably with now and are worried about the here and now and can’t afford to think about the future.
They key emphasis that seems to be in the forefront for this proposed new pension is for middle income earners to be able to retain their current lifestyle of living once they reach their senior years. This is as opposed to ending up in a low income bracket which means depending only on what the current pension plans like the CPP and old age benefits have to offer.
The indicators are that seniors need to be able to rely on 70% of what their income was once they hit the retirement years, in order to maintain the standard of living they have enjoyed. The Liberals raise a good point when they say that the CPP has not changed much in its approach since its introduction in 1966.
While those who stand to benefit from this proposed new ORPP (Ontario Retirement Pension Plan), it also means an additional burden on business. They would have to contribute to this as well, and this could end up acting as a deterrent for those who are thinking of starting a business, or moving a business to Ontario.
As with anything of this nature there are always two sides of the coin to be considered, and hopefully it will demand some more thinking and planning before finally becoming a reality.
Ontario businesses feel they are being hit hard enough between their tax obligations as well as payroll deductions and although they try to take advantage of tax business breaks and utilize professional accounting services to help them keep on track, many are finding it tough to turn over even a limited profit.