The Investment Industry Association of Canada (IIAC) questions whether a CPP supplement is needed, given the saving options already available to investors.
In a release, it says, “It may not even make sense [since] voluntary supplemental pension plans generally involve contributions to individual accounts, much like existing defined contribution plans [and] group RRSPs.”
Read: Implications of the voluntary CPP for employers
And, “there are higher costs associated with implementing and maintaining a whole new administrative infrastructure (e.g., to track deposits and potentially withdrawals and transfers) that may outweigh the retirement savings benefit to Canadians.”
Instead, the IIAC says the government should make improvements to existing tax-assisted savings vehicles, including RRSPs and RRIFs, as well as focus on how to help groups that require additional pension support.
Looking for related articles? Read more stories about the CPP.
A version of this story originally appeared on our sister site, Advisor.ca.
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