Fear Is Robbing Canadians of Secure Retirements
A Hidden Pension Crisis Among the Middle Class
A quiet retirement crisis is emerging across Canada. While much of the past concern focused on low-income seniors, a new challenge now faces what the author calls the "Vulnerable Massive Middle." These are hardworking Canadians who have saved modestly but lack the secure workplace pensions their parents relied on.
“More than 60 per cent of Canadian workers have no workplace pension. In the private sector, 90 per cent lack the gold-standard defined-benefit plans that once ensured stable income for life.”
This group is entering longer retirements, often with fewer family supports and growing health and long-term care expenses. Their only stable income sources may come from the CPP, QPP, and OAS programs.
National Implications of Inaction
Without reform, a substantial portion of future retirees will encounter financial insecurity. Studies consistently show this will create lasting social consequences—heavier dependence on income-tested programs, pressure on healthcare funding, and younger generations leaving work to care for elderly relatives.
A Simple, Cost-Effective Fix
Fortunately, Canada already has a viable solution: allowing or encouraging more people to delay the start of their CPP/QPP benefits. A small and low-cost adjustment to public pension rules could transform how Canadians plan their retirement and significantly bolster their financial stability in the long run.
Author’s Summary: A minor shift enabling delayed CPP/QPP benefits could shield millions of middle-income Canadians from looming retirement insecurity and reduce national economic strain.