Voluntary retirement system remains deeply flawed: report
When it comes to looking after their retirement, people are pretty stupid, maintains economics professor Teresa Ghilarducci in the New York Times. And the more they're left to do things on their own, the worse off they're likely to be.
Depressing? Yes, a bit. But don't just take her word for it. Take a quick look around you, she suggests.
Most people don't don’t have enough savings, don’t know how much “enough” is, make inaccurate assumptions about the length of their lives and their ability to extend their working careers, and aren’t able to find qualified help to help them make more appropriate savings decisions.
In fact, much of what passes for retirement planning is really just an exercise in denial, leaving too many dopes to look after their own affairs.
Her plan would create guaranteed retirement accounts on top of Social Security. These accounts would be required, professionally managed, come with a guaranteed rate of return and pay out annuities.
Realizing it would have to be funded out of tax dollars, is this the way to go. Or do you like the freedom a voluntary program like RRSPs already provides?
By Gordon Powers, MSN Money
Posted by: Frank | Jul 31, 2021 2:52:08 PM
I do not support this at all. Why should my tax dollars go to people that are too stupid and/or greedy to manage their own finances. Let them rot for all I care. If you live beyond your means, then tough, you deserve no second chance. There are many of us who can prepare for our retirement quite well, and I see no reason we should pay for those that can't. Sound harsh? TOUGH!
Posted by: mike | Aug 1, 2021 9:26:07 AM
Agree with above!
Posted by: Frank | Aug 2, 2021 8:29:54 AM
Absolutely ridiculous!!!
Posted by: Western Guy | Aug 2, 2021 5:52:29 PM
Its already being done (twice). Its called CPP and GIS. If you aren't bright enough to save for retirement then you scrape by in retirement. Seems fair and equitable to me. Its not like people aren't told to save for retirement. It isn't some big secret.
Posted by: Bob | Aug 5, 2021 7:10:05 AM
We already have all the Government sponsored pension plans necessary to keep us alive. If you want to save any more then it's up to you. All the years of working and paying taxes has paid for it so don't look at it as a hand out from them. You should however save some money up in a safe place out of the eyes of the government so as to not affect your Guaranteed income supplement. If you are married you should also get divorced before you retire so that you and your spouse both can collect the full retirement allowance from the government .. The people that never worked a day in their lives will get the same as you get so the only advantage will be that maybe you won't have to be paying rent as you will own your home ... Not much consolation is it ...
Posted by: Bob | Aug 5, 2021 7:13:38 AM
This is already being done now with ourt tax dollars. The only thing wrong is the people that don't work at all will get the same as the people that do .. It's a sad system but I suppose it is the best we can come up with. I don't think I want to pay anmore people to take care of my retirement we are already way too top heavy in the Goverment now ..
Posted by: Plano | Aug 5, 2021 8:13:40 AM
I find if you depend on a company pension and your Government takes the earned pension and changes it and makes it look like you have a freebee. none of your planning as was done in GM the Pension plan in the 80's had 19,000,000,000.00 billion in it the UAW and the Corporation used it to expand the company that could not fail. The Governments through the Pensions out with the hundreds of thousands of retirees that had worked for 30 plus years to retire as their pensions were agreed to contractualy but in todays world the government makes it a contract is not a contract as we now become a legeasey or something the company has to pay because the 19,000,000,000 billion was spent and this in the governments eyes is the falt of the retirees.
The Government now should have cut all the pension plans in all governments likwise in 2008 as it shut down the biggest contributer to their pensions too.
Posted by: dave | Aug 5, 2021 10:53:03 AM
I don't like this idea because over my 55 years i've found that once government, companies or people get their hooks into your money they really don't like to let it go.
Posted by: Mike | Aug 5, 2021 11:07:55 AM
Not funded by taxpayer dollars. What we should have is when we go to take a new job we legally have to submit our social security #...well every worker should legally have to have an RRSP account# (a little bit different one where government rules prevent you from cashing out early and limit what kinds of investment you can have in it so not so much risk and things like that.) and automatically out of your paycheck a small amount is deducted and sent to that account. Reduce the employer CCP contribution and have them contribute to this one. This way it's "forced" savings for retirement, yet the individual controls the account and investments and can potentially get way more growth out of it than what our CPP system returns.
Posted by: Plano | Aug 6, 2021 4:13:21 PM
Had we all been able to stack our pensions as do the federal Ministers that come from places like the O.P.P. retired and do 12 years you would get a pension for each 6 year term. R Norlock has a few O.P.P. trainees working to improve their pensions too. as a Retiree from General Motors of Canada Limited 19 years and having R. Norlock dismiss me for asking him to find out who owns General Motors of Canada Limited 3 years ago Quoted to me how the Governments of Ontario and Federal had paid 10.6 billion to the USA to save our pensions and Jobs.
The Ontario Superior Court has it the Corporation of General Motors is the indirect Parent of General Motors of Canada as of June 1, 2009. This could only mean our Government ownes General Motors of Canada Limited and is guided by the USA allowing all the American workers Salery to work in Canada earning their pensions working for our Government?