Government and Private Pensions in Canada

Résumé du livre

This study is concerned with the relative importance of government and private pensions in Canada. The examination of data on retirement income of older persons shows that government pension payments are their most important source of income. These figures indicate the serious limitations of private pension plans as sources of retirement income for a significant proportion of the population. These limitations are due to the nature of these plans - their lack of universality, restrictions on the vesting of benefits and the inability of plans based on savings to guarantee pensions in real terms in a economy subject to varying degrees of inflation. This study is organized around the hypothesis that government pension plans are essential if older persons are to have adequate income. Support for this hypothesis is found in the review of the economic theory of pension plans, in the examination of the history of private pension plans in Canada, as well as in the data of current pension payments.