Bold solutions needed to avert a pension crisis; Outgoing head of Teachers’ plan calls on Ottawa to improve defined benefit plans, CPP

November 4th, 2013

Ellen Roseman of the Toronto Star

As Jim Leech gets ready to retire as head of Ontario Teachers’ Pension Plan, which hehas led since 2007, he wants to put his views on the record. Canada is facing a pension crisis, in his view. More than 60 per cent of employed Canadians don’t have a workplace pension and haven’t saved enough to support their lifestyles in retirement.

If you’re in the $30,000-to-$100,000 income group, you may fall short when adding up your old age security and Canada PensionPlan benefits, plusregistered retirement savings plan and tax-free savings accounts. Canadians have set aside only 5.5 per cent of their income for savings, a sharp drop from 20 per cent in the 1980s. With high fees and flat returns on tax-sheltered investments, many question the value of voluntary savings.

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