To the Editor:
Canada's pension problem today is rooted in stagnant disposable incomes among middle-class families.
Over the past six years, the wealthiest 10 per cent of Canadians have done very well. But the other 90 per cent have not. Low-income people are further behind, and most in the middle are working hard just to stay even. They're not getting ahead.
That's why most Canadians (outside Saskatchewan and Alberta) believe this country is still in a recession, even though it ended nearly three years ago.
As our sluggish economy stalls even further, unemployment worsens, job quality drops, and household debt balloons above 150 per cent of disposable incomes - most Canadians feel more pessimistic.
Major family obligations like post-secondary education for your kids and homecare for sick or elderly loved-ones are putting huge pressures on typical household budgets.
Seventy percent of those heading quickly toward retirement face the reality of not having a private-sector pension to draw upon. They'll have only the Old Age pension, the Guaranteed Income Supplement (if they qualify), the Canada Pension Plan (if they've participated), and any personal savings they have.
To those a few years further out - say, in the 45 to 55 age bracket - the Harper government has only a harsh message: You won't be able to count as much on the Old Age pension.
Seventy percent of these folks are living on incomes of less than $40,000/year. Without the Old Age pension, up to a third of them (especially women) would fall below the poverty line.
The best actuarial experts in Canada say the Old Age pension is already sustainable and doesn't need "fixing". The world's best financial rating agencies (Moody's and Fitch) say Canada doesn't need a harsh austerity program that slashes public services.
What is needed is a concrete plan for economic growth, better productivity, good job creation and stronger disposable incomes for middle-class families.
Ralph Goodale, MP, Wascana, SK.
