Panellists at Benefits Canada’s Benefits & Pension Summit in Toronto agreed that Canadians need to save more for retirement, but they were unable to agree on a solution.
Pooled registered pension plans (PRPPs) were one of the proposed solutions, but they received mixed reaction from the panel.
William Robson, president and CEO of the C.D. Howe Institute, argued in favour of PRPPs.
But Jim Keohane, president and CEO of HOOPP, came out against them.
“I don’t like PRPPs. They’re like a rebranding of RRSPs,” he said, adding that Canadians have a lot of RRSP contribution room available.
Zev Frishman, executive vice-president and chief investment officer of Open Access Ltd., said PRPPs can work as long as there is a good structure around them.
“It has to include auto-enrollment,” he said, using Quebec as an example with voluntary retirement savings plans. “Things can be done in order to make it work.”
It’s completely unrealistic for all Canadians to be educated on how to save enough to take care of themselves in retirement, noted Michael Milns, senior consultant and retirement practice leader with Towers Watson.
David Lawson, chief investment officer of the Workers’ Compensation Board – Alberta, suggested that mandatory contributions will help Canadians save more.
“Mandatory is really key, and that’s the take-away for us here in Canada,” he said.
All the articles from the event can be found on our special section: 2014 Benefits & Pension Summit Coverage.