Research belies PM’s warning about OAS
Expert advice commissioned by the federal government contradicts Stephen Harpers warnings that Canada cant afford the looming bill for Old Age Security payments.
But research prepared at Ottawas request argues Canadas pension system is in far better shape than the Europeans, and theres no need to raise the retirement age. Edward Whitehouse who researches pension policy on behalf of the Organization for Economic Co-operation and Development and the World Bank was asked by Ottawa to study and report on how Canada stacks up internationally when it comes to pensions.
His conclusion: The analysis suggests that Canada does not face major challenges of financial sustainability with its public pension schemes, and there is no pressing financial or fiscal need to increase pension ages in the foreseeable future.
While other OECD countries face big pension problems, the report predicts Canada will do just fine as the baby boomers retire. Thats because, as Canada heads into the boomer crunch, it spends far less than the OECD average on public pensions. Further, Canadas relatively high levels of immigration will partially offset the distortions of an aging population, and Canadians tend to save more independently through RRSPs and workplace pensions than Europeans.
http://www.theglobeandmail.com/news/politics/research-belies-pms-warning-about-oas/article2320279/