CPP to be expanded within the year

The Canada Pension Plan will be enhanced in 2016, says federal Finance Minister Bill Morneau.

“Our goal is to work together with all provinces and territories to get to a Canada pension plan enhancement, and our aim is to do that in a collaborative way this calendar year,” he told the House of Commons Feb. 16.

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“We are working diligently with provinces and territories across this country in order to improve the Canada pension plan, to enhance it so that Canadians can retire in dignity,” he added.

He says the government has also been working with Ontario to co-ordinate pension enhancements as that province gears up to start its own plan.

Read: Scrap ORPP, but expand CPP, says Mintz

A study released by left-leaning Broadbent Institute says half of all Canadians aged 55 to 64 without a private pension have only enough savings to survive for about a year.

During the 2015 federal election in which the Liberals came to power, the party promised to work with the provinces to expand CCP, and to create a lifelong pension for injured veterans.

Read: CRA sets 2016 max pensionable earnings

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.