A small, low-cost adjustment could transform how Canadians decide when to begin their CPP (Canada Pension Plan) and QPP (Quebec Pension Plan) pension benefits.
A hidden retirement issue is developing. While attention has long focused on low-income seniors, a new group—the Vulnerable Massive Middle—faces a different kind of insecurity. These are Canadians who have worked hard and saved some money but lack the secure workplace pensions that previous generations relied on.
Over 60% of Canadian workers do not have a workplace pension, and in the private sector, 90% miss out on defined-benefit plans, which historically guaranteed stable lifetime income.
"They’re exposed – and they don’t even know it."
The Vulnerable Massive Middle will compose over one-third of Canada’s future senior population. Without reform, numerous studies indicate they face a looming retirement crisis, which will lead to:
Canada already has a built-in option to address this: the ability to delay CPP/QPP benefits, which can enhance retirement security.
"Fortunately, Canada already has a built-in solution: the option to delay CPP/QPP benefits."
This simple policy tweak could significantly improve retirement outcomes for many Canadians.
A modest adjustment to CPP/QPP timing could secure lifetime income for millions of Canadians facing retirement insecurity without guaranteed pensions.