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CPP Morneau – CP

Source: The Canadian Press – Broadcast wire
Jun 17, 2016 4:00

By Andy Blatchford

OTTAWA – A briefing book prepared last fall for incoming Finance Minister Bill Morneau warns that Canada’s spending on public pensions is dramatically lower than many other rich countries _ even though private-sector pension coverage has deteriorated.

The document, obtained by The Canadian Press, said that between 1991 and 2013, private-sector pension coverage fell from 31 per cent to 24 per cent.

But at the same time, the document suggests the federal government is not picking up the slack.

Canada spends “significantly” less on publicly funded pension support _ through programs such as the CPP/Quebec Pension Plan, Old Age Security and the Guaranteed Income Supplement _ than other OECD countries, the briefing states.

A chart in the briefing binder projected Canada to rank No. 17 out of 20 countries in 2015 for public pension spending as a percentage of gross domestic product, with just over five per cent. It said the average OECD spending was projected to be 9.5 per cent of GDP.

The document also highlighted concerns that younger Canadians aren’t saving enough for their eventual retirement.

(The Canadian Press)

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