Canada's retirement savings system is structurally sound, but not perfect. It is a foundation upon which to build. The life and health insurance industry believes that there are a number of areas in which governments can stimulate greater retirement savings by Canadians. Reaching that goal will require a combination of education, incentives and legislative changes, within a framework where Canadians can choose among competing service providers and savings vehicles.
The industry supports Pooled Retirement Pension Plans (PRPPs) which have been introduced in several jurisdictions. PRPPs (also known as VRSPs in Quebec) will make it easier and cheaper for employers to offer a retirement savings program for employees. It reduces administrative work and will be especially attractive to small and medium-sized employers. By relieving the employer of almost all administrative costs and compliance issues except for payroll deduction processing, more companies, their employees and the self-employed can participate.
Canada’s life and health insurance industry plays a key role in helping Canadians prepare for retirement not only through workplace plans, but also through the advice, and savings and lifetime income solutions, delivered by the thousands of financial advisors who serve Canadians every day in communities from coast to coast. The industry is ready to play its role in supporting governments, businesses and individuals in advancing the retirement savings system in a distinctly Canadian way: inclusive, practical and affordable.
Saving More for the Future: An Achievable Goal for Canadians
CLHIA Policy Paper
CLHIA's recommendations to improve the use of workplace retirement savings plans.