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by Daniel Gloade on February 3, 2014

A sobering article appeared in the Record.  It is found here:  There is another article here: and finally a third article here:

Perhaps the next frontier of government assistance is financial planning.  Perhaps they want the C.C.P. to be so robust that reasonable people can assume that it will take care of their financial needs.  Perhaps they want a program that deletes money directly from their paycheque.  That way they are forced to save for retirement.  They also would not have to worry about maximum RRSP contributions.  The C.C.P. amount would factor tax savings into the monthly amount.

I believe that many people would want the option of opting into a government plan.  You type in a monthly budget and the software would advise you how much money you need and when you can retire.  It would be on a sliding scale.  The sooner you retire the more money you will need.  The software will also advise you of the average monthly budget for seniors and the minimum monthly budget for seniors in that area.  That will encourage users of the program to “keep it real”.

If you make the payments as per the software you will have a guaranteed income for life.  If you die before your projected date the government gets to keep the money.  The government will lose, however, if you live longer than the expected amount.  The program will give you an income regardless of a stock market failure.

Yes, this is another example of ‘big government”.  Retirement planning and healthcare have one thing in common, however.  Laypeople cannot make informed and rational decisions about the where they spend his or her money.  Also, retirement planning is like a co-op.  The people who want benefits when they retire also want to keep the monthly rate low.  There are incentives for everyone to find the right balance.  Finally, a collective fund would give retirees more clout when dealing with lending institutions.

Just a thought.

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