Declining pension coverage, shrinking nest eggs and persistent financial instability have shifted Canadians’ retirement focus from enjoying freedom to financial survival.
So last year, the federal government introduced Pooled Registered Pension Plans (PRPPs), which are alternative retirement savings vehicles for Canadians.
And in August, the government pre-published its regulatory proposals.
The well-intentioned plans are meant to make saving for retirement easier.
However, many industry experts have expressed doubt over their efficacy. Others have argued they would be difficult to implement across all provinces, given the challenge of harmonizing all applicable rules and laws.
The Ontario government and insurance industry have locked horns over PRPPs. While the government is dragging its feet, the industry is lobbying for fast implementation.
The advice industry’s response to the low-cost pension plan has also been mixed, with some viewing PRPP participation as a threat to professional advice.
Regardless, the plans may become critical tools in a not-so-distant future. Here’s everything advisors need to know.
And from our sister site, BenefitsCanada.com