Read this article from the Vancouver Sun.
It’s a piece on pension reform. If you’re not aware of what’s (soon to be) going on with pensions in Canada, here it is in a very condensed form: Speaking in Davos, Switzerland last week at the World Economic Forum, Prime Minister Harper raised a few eyebrows in Canada when he stated that pension reform was a priority for his government. This of course brings up a lot of questions. What exactly does he mean by reform? Would this include entitlement reductions, claimants needing to be older than 65 (the current age to claim a government pension). While what exactly these reforms will look like remains to be seen, they are needed. According to the Vancouver Sun:
The chief actuary for the federal Old Age Security system estimates that as our population continues to get greyer over the next 40 years, the ratio of people of working age to retirees will fall from 4.4 to one to 2.2 to one.
Changing demographics; this will not only be a major challenge of a generation, but it will also have implications relating to poverty. The baby boomers are getting old; the first wave of them retired in 2011. Pensions will not be the only issue impacted by a nation (and a world) populated by more old than young persons. Issues such as old age security, housing, and other social and economic issues will need to be addressed to avoid younger tax payers being over burdened by a system that is not sustainable.