Corrupted Pension Plans: Older Adults

A pension refers to a regular payment made during an individual's retirement from an investment fund to which that person or their employer has contributed. (n.d., Collins English Dictionary) These payment programs exist to ensure the financial well-being of an individual upon their retirement. However, with the price of living constantly increasing alongside the average Canadian lifespan, more and more seniors find themselves retiring into poverty. The Canadian Pension Plan (CPP) is offered to any working Canadian citizen over the age of eighteen. The program puts aside a set amount of the employment profit of an individual each year combined with interest rates to guarantee their financial stability throughout their retirement. This system has been commended in the past, however the reality stands that senior citizens still face poor financial circumstances following their retirement.

In the world we live in today, the economy is the foundation of everything. Money seems to be the obvious prime aspect of our society, with everything revolving around it. With this being said, it is inevitable that the cost of living will rise, as it has and will continue to do. During the time that senior citizens were working and accumulating their pensions, the amount of money they were bringing in was most likely adequate according to the currently economical situations; meaning that they could afford the current price of living. Unfortunately, the price of everyday life will never reach a stand-still. This leaves senior citizens to be financially overwhelmed during their retirement. 

Ken Georgetti, the president of The Canadian Labour Congress feels strongly that seniors have earned the right to have their retirement savings protected and their pensions in which they rely on improved. (Georgetti, 2012) "The best way to show seniors the respect they deserve would be to ensure that not one of them is faced with having to work until the day they die or living their final years in poverty. It's only fair that after a lifetime of work and giving to their communities, seniors know they will have enough to live the rest of their lives with dignity." (Georgetti, 2012) Seniors are also living significantly longer than they did in the past. Therefore, the CPP must be altered to accommodate the extra 10-15 years that the majority of older adults are living. The Canadian Labour Congress believes that the only way to solve this ongoing issue is to expand the Canadian Pension Plan in accordance to today's living costs. 

The liberal ideology embodies government involvement. It states that the government should intervene in order to ensure a stable economy and society. (Straka, 2012) In referral to the Canadian Pension Program, the government should make further efforts to ensure the financial stability of a large portion of the Canadian population, senior citizens. Another standpoint of this ideology is that investment funding by the government encourages growth and employment. (Straka, 2012) If it becomes known that by being employed throughout your life will indefinitely ensure your financial survival upon reaching elderly years, it is likely that employment statistics will increase. 

I believe that the improvement of the Canadian Pension Plan is vital to our society. I think of my own parents; they have done so much to support me so far in life and will continue to support me financially. They have provided me with so much and invested so much of their earnings into making certain that I have a good life. This also applies to other parents across Canada. Their contributions are endless. It is time we recognize this and make a change to help them for once. This issue also called me to reflect on myself, as should others who are involved in the regulations of the Canadian Pension Plan. We too will be elderly someday and face retirement. Improvements to this system should be made as soon as possible to avoid vast poverty among the elderly society. 

-Jenna

References

Just the Facts - Pensions, Benefits and Seniors. (2012, September 28). Human Resources and Skills Development Canada. Retrieved from http://www.hrsdc.gc.ca/eng/corporate/facts/seniors.shtml

Let’s show real respect for our seniors: Georgetti says we must ensure that no senior is faced with retiring into poverty | Canadian Labour Congress. (2012, October 1). Home | Canadian Labour Congress. Retrieved from http://www.canadianlabour.ca/national/news/let-s-show-real-respect-our-seniors-georgetti-says-we-must-ensure-no-senior-faced-reti

Straka, S. (2012). Liberal Ideology (institutional). Chapter 3: Social Welfare Theory.