Choice in Retirement Savings
Helping you save for retirement is a key issue in this election.
As Conservatives, we have an important plan to provide optimal support for retiring Canadians. In general, the opposition favours national bureaucracies, where paid ‘experts’ control the flow of money. We favour programs that provide direct support to those who need it most. We also believe in providing you with the flexibility to invest that money as you see fit.
We take a different stance than the opposition. Trudeau’s Liberals want to nationalize the Ontario Liberal pension system - a system which requires employers and employees to pay a significant new payroll tax. This is important to know because it’s a scheme which will require every Ontario resident without a workplace pension plan to pay up to $1,643 in new mandatory premiums. In fact, the cost is over $1000 for a worker earning just $60,000 per year.
According to a recent survey of Ontario businesses facing the Liberals’ proposed tax hike, 69 percent indicated that they would have to freeze or cut salaries. And 53 percent indicated that they would have to reduce positions in order to address the increased cost of hiring.*
A Program We Can’t Afford:
A new government-run pension program funded by an increased payroll tax would cost working Canadians thousands. By forcing down wages and pushing up the unemployment rate, the hike would be counterproductive. It would only worsen the situation for those who actually struggle during retirement - generally single seniors with limited work history.
The Conservatives’ Plan:
Our alternative is to enhance incentives for voluntary saving options. We introduced Tax Free Savings Accounts (TFSAs), and recently doubled the contribution limit. This, along with existing retirement savings vehicles, makes it easier for Canadians to save for retirement. And it also gives Canadians an opportunity to save for other things, such as a new home or an education program. These types of personal investments, facilitated by a system of voluntary savings, are not possible under the higher-payroll-tax, mandatory-savings structure preferred by other parties.
TFSAs, in addition to RRSPs, the existing CPP, and other savings programs, help Canadians save for retirement. Unlike the Liberal plan, ours doesn’t kill jobs along the way. The Liberals and the NDP opposed our decision to double the tax free savings account contribution limit, claiming that it only benefits the wealthy. This claim is objectively, veritably false. Here’s why:
- -Over 65% of TFSA holders make under $60,000 per year
- -Almost half of TFSA holders make less than $40,000 per year.
- -Over half of those who max out their TFSAs make less than $60,000 per year.
I am proud to be part of a party that trusts Canadians to make their own choices about retirement savings. Our plan is better for working Canadians, better for retirees and better for the economy as a whole.