Op-Eds
In recent weeks, Ottawa has announced several financial assistance measures for those most affected by the COVID-19 crisis. They include increased flexibility for employment insurance benefits, generous wage subsidies for businesses, and an emergency response benefit of $500 per week for affected workers and caregivers. But these programs pose implementation challenges that could result in Canadians waiting weeks to receive the financial assistance they need, assuming they qualify at all.
An unprecedented demand spike is already challenging the capacity of the employment insurance system, especially with Ottawa having closed Service Canada outlets across the country. Technical difficulties around eligibility conditions for the…
The single-employer pension plan model is dying. We do not need to mourn its demise, but we do need to replace it.
In a recent report published by the C.D. Howe Institute, we promote the implementation of new private-sector pension plans in Canada based on a better governance model. Rather than being sponsored by single employers, the new plans would be sponsored by multiple employers and governed by independent management boards that include representation from all stakeholders. Scale is of the essence. These new plans could be either of a target-benefit pension plan variety (TBPP) or of a collective defined-contribution pension plan type (CDCP).
The names sound complicated, but the essential elements aren’t.
A…
For much of the last decade, Canadians have been told their debt levels were unsustainable and that their day of reckoning was fast approaching. Data recently released by the Office of the Superintendent of Bankruptcy (OSB) seem to indicate that day has arrived. According to the data, insolvencies by Canadian consumers were up 9.2 per cent in October 2018, compared to a year earlier.
To say the least, these results appear alarming. But in light of what we know about homeownership and net worth, we are not so sure. The data show that Canadians’ net worth has never been higher. Moreover, the data do not distinguish between the more harmful economic effects from households in negative net asset positions, or balance sheet…
Canadians want a reliable retirement income so they can enjoy life without worrying about outliving their savings. They also want flexibility so they can adapt to changing circumstances, particularly relative to their health. Delaying receipt of public-pension benefits — Canada or Quebec Pension Plans (C/QPP) and Old Age Security (OAS) — to age 75 can help on both counts.
Retirement planning is challenging. Most of us struggle with how much money we need to save, and we see post-retirement financial decisions as a separate and secondary consideration. Yet, as we show in our recent C.D. Howe Institute study, the manner in which savings are used in retirement has a direct impact on how much we need to accumulate prior to retirement…
Hugh Segal is principal of Massey College. He served in the Canadian Senate as a Conservative from Ontario and was vice-chair of the subcommittee on urban poverty.
Every democracy’s internal legitimacy is tied to how fair the residents of that country feel…
