GoC Pooled Pensions?

[codetrap]

http://www.calgaryherald.com/busines...078/story.html


Okay, I don't understand the point of this. I work at a company that doesn't have a pension plan, and I knew it going in. So I made my own pension plan. Now, assume I'm a typical Canadian..

If I'm not already looking to take care of my own future, why would I trust the Gov't to provide me a Pension Plan?

[DayGlow]

Because the government should coddle you from birth to grave.

[dexlargo]

^^I think you're exactly right. Since it's an optional plan for the employee, if he's not putting money into RRSPs, why would he suddenly decide to take advantage of this other completely optional retirement plan?

The only benefits that I can see are:

1 - It might be easier to enroll in than setting up your own RRSP - No choosing what to buy, and who to manage it for you, etc. So concievably some people might take advantage of it that aren't putting money into RRSPs.

2 - it might have less management fees than the managed funds that you can buy with your RRSP money that are comparably structured funds which might result in higher yields.

So, I don't think it's unwelcome - it's at least another choice available to the public when making their plans, but I don't think it's going to be the silver bullet that solves the problem of how to get people to put money away for retirement.

[1barA4]

Dupe

[1barA4]

Originally posted by DayGlow
Because the government should coddle you from birth to grave.

Says the guy with the company pension

True, there are options aside from RRSP's like managing your own stock portfolio and whatnot, but if your company does not offer a pension plan, sometimes its nice to offload managing it to someone else.

That and though my company offers RRSP matching, it has to be in their specific vehicle, which is pretty terrible (and I cannot touch the funds without quitting the company).

[codetrap]

I don't get the point though. You can walk into a Sunlife office and set up a pension plan in an hour, and do direct withdrawals. All it takes is 10 minutes initiative to look up.

I figure that anyone that's too lazy to do it themselves, isn't going to take the time to sign up to the govt one.

[DayGlow]

Originally posted by 1barA4


Says the guy with the company pension

Why do you think I choose my profession? Total compensation was one of the deciding factors. I don't need the government to make my decisions for me.

I do like the idea of the pooled pension vs ccp increase though.

[Feruk]

I can't say I have a clue what exactly this is, or exactly why I pay CPP contributions, but I know I won't be participating. Self directed all the way.

[dexlargo]

Originally posted by codetrap
I don't get the point though. You can walk into a Sunlife office and set up a pension plan in an hour, and do direct withdrawals. All it takes is 10 minutes initiative to look up.

I figure that anyone that's too lazy to do it themselves, isn't going to take the time to sign up to the govt one.

It's not an opt-in, it's an opt-out. The employee would have to take positive steps to not be in the program. Maybe what they're hoping is that the people truly are lazy and won't bother to opt out of the program.

[1barA4]

Originally posted by dexlargo
It's not an opt-in, it's an opt-out. The employee would have to take positive steps to not be in the program. Maybe what they're hoping is that the people truly are lazy and won't bother to opt out of the program.

LOL suppose it would help if I didn't skim. You are correct, it requires an opt out...in which case, I would say f it.

I shudder whenever someone mentions Sunlife. Bad experience with them (benefits-wise, so I definitely wouldn't trust them with my retirement)

[Xtrema]

How about removing all CPP and government pension plan all together? Or just keep raising CPP rates because there is no opt out for CPP.

Another vehicle is just a waste of money.

[Sugarphreak]

...