The C.D. Howe Institute recently released their recommendations on how to break the deadlock in the Canadian pension system. With many citizens not saving enough for retirement, provinces, lobby groups and retirement gurus alike are looking to increase tax-deferred saving, improve access to good retirement saving plans, and modernize the rules governing
retirement income. The federal and provincial governments have committed to finalize their options by May after nation-wide public consultations. Some of the possibilities under consideration include:

• Raising the annual limits on allowable RRSP (Registered Retirement Savings Plan) contributions
• Increase the lifetime RRSP limits so that those who can contribute
  more later in their careers will be able to do so
• Increase private sector solutions that can be led by financial institutions
• Adjust the Income Tax Act to address the disparity between federal employees (who can save up to 34% of their income toward retirement, while the general population is limited to 18%)
• Implement a universal pension plan
• Move the RRIF (Registered Retirement Income Fund) threshold from 71 to 73
• Use the CPP (Canada Pension Plan) benefits as the base for increasing retirement benefits.

More to come possibly in early March with the budget announcements.