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Pensions Being Hit

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February 23, 2010 – Comments (3)

I suppose it has been about 3 years since I realised people will not be getting the pensions they think they are entitled to. 

A post I did almost two years ago has a graph showing a ratio of the number of working age compared to retired age and it is one scary graph.  I just did a very quick back of the napkin calculation and since I wrote that piece there is about 2.5% fewer workers per retired person.  By 5 years it would be a decline of about 12% and 10 years about 24%.  

This is absolutely nuts, I am looking at these numbers and doing some research to try and come up with an understand of the dollar implications of this declining worker to retiree ratio and I can not believe what I found.  The article headlines Pension Reform within the title.

Now, as someone who has been looking at the issue and the numbers, I am thinking this going to be an article on pension reform to make it affordable with a declining working population, lmao.  Nope, it about:

As public angst about retirement savings grows, the Liberals and NDP are urging Finance Minister Jim Flaherty to make a decision and surge forward with reform of the Canada Pension Plan. Both parties want to see the CPP used as a base to help Canadians maintain their standard of living in retirement.

 So, not only do the young workers inherit this massive debt mess, they are also supposed to ensure those that did not pay their fair share of taxes can continue with their excessive lifestyle.

Well, I intended to do a post about the many pensions being hit, this one on Mish being an example that shows how growing pension obligations are overburdening budgets, and the need for pension reform, only my idea of pension reform was to make them affordable and sustainable.

 

3 Comments – Post Your Own

#1) On February 23, 2010 at 2:52 AM, paperpump (96.67) wrote:

christmas is over.. 

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#2) On February 23, 2010 at 8:14 AM, ChrisGraley (29.64) wrote:

See the USA for what comes next.

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#3) On February 23, 2010 at 1:55 PM, ByrneShill (73.70) wrote:

It doesn't matter. The only people with DB pension plans anymore are government employees. Either they tax us to fill the shortcomings of the plans or they tax us to reimburse using the CPP. Either way people of my age are gonna end up paying 50%+ taxes even at low incomes.

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