When should you retire? Whenever you want.

When should Canadians retire? A thought to consider....

When should Canadians retire? Will they have enough?

What is liberalism? How do the policies/ideologies/views of liberalism impact our dramatically increasing aging population in Canada? This one specific blog entry won’t attempt to answer that broad question, but will briefly analyze a program currently active in Canada affecting our aging or older population. That is the CPP (Canadian Pension Plan program).  The purpose or intent is to protect the contributor and family when that contributor retires. It is enforced by the government, and ensures coverage is needed post-retirement. But is it enough? There is also the OAS (Old age security program), which pays seniors significantly less than the CPP. There are other pensions for seniors as well in Canada. The program is funded by the employer and employee contributions. The program is considered social insurance.

According to Mullaly (2007) liberalism, “comprises a set of beliefs based on the assumption that there should be as much individual freedom as possible in any civilized society while allowing for essential constraints” (p. 91). My personal view is that the CPP program coincides with Liberalistic ideas and views in society. Although many can, will, and may argue that it holds views of the neo-conservatism ideologies or perhaps even others. It was actually created by the liberal government in 1966 under Prime Minister Lester B. Pearson. How do I feel it is liberalist or possesses a liberal view? Well based on the quote from Mullaly I feel that is exactly what the CPP embodies; individualism to a certain extent.

I came across an interesting report, completed by the Canadian Centre for Policy Alternatives (CCPA) titled, Options for Pension Reform – Expanding the Canada Pension Plan. The report suggests that the CPP be reformed. The author, Monica Townson (2010) explains that, “…there is growing support for expanding the Canada Pension plan as the best way to ensure all Canadians have adequate incomes in retirement” (p. 1). She further suggests that there is a growing concern that if changes are not made now, many workers today will not have enough income to support themselves when they retire. Furthermore, she looks at the options for expanding the CCP. In summary, one key finding of the report suggests that eleven million employed Canadians have no workplace pension other than the CPP, and RRSP’s would not fill the gap (Townson, 2010, p. 2). Should the CPP be reformed? Well of course there are many factors that will contribute to your monthly payout. Current governments (whoever is in control at the time), and the current state of the economy are just two examples. I agree with the author of the report and feel that changes need to be made to ensure older Canadians have enough to live on once they retire. I myself feel that an RRSP and the CPP alone will not be a sufficient source of income when I retire. The CPP should be reformed to accommodate and ensure that all Canadian senior’s basic life needs are met.

The liberal ideology is individualistic, but Mullaly (2007) explains that, “Social justice to the reform liberal is based on a distribution or redistribution of resources, which, of course, is consistent with a belief in equal opportunity. Liberals, by way of state intervention, would redistribute income and some goods and services through the tax system/and or social welfare system” (p. 96). This very concept can be seen with the CPP. It is a social welfare program designed to help retired Canadians. But many could argue that it doesn’t. There is a strong individualistic component associated with the CPP. How? You are the contributor yourself, and you are the one contributing to your own retirement based on your work accumulation over your years spent working. This is a belief strongly connected with Liberal ideology.  If you don’t contribute to your pension (s), than it is your own failure.  Furthermore, Mullaly (2007) states that, “All government action should have as its goal the maximization of an individual’s pursuit of self interest” (p. 98).  The CPP embodies that the government ensure individuals contribute to his or self interest, in this case your pension (s). This can be seen not just with the CPP, but with other pensions as well.

I am not an older adult, still quite young in fact, but I know many people who face problems being an older or aging Canadian adult. Many seniors strongly feel that they cannot afford to retire at the age of 65, and many are retiring with large debt loads. Some have other pensions, but still feel it is not nearly enough. In reading the article, Retiring with debt, it explained that, “debt management is a recurring theme in retirement planning literature. Debt may be problematic for older workers if not paid off before retirement since repayment can be more difficult on a reduced income” (Marshall, 2011, p.3). Many life factors contribute to this; family, mortgages, student debt, divorce, excessive spending, etc. This debt load only adds to the problems many seniors will face post-retirement.

I know people personally; co-workers, friends’ parents, and older family member’s who are not going to have enough to live on once they reach the age of sixty five. Therefore, being able to retire at that age is something that cannot happen for many of them. They must continue working. This is a current ongoing problem facing our aging population. I personally feel there should be no retirement age, and the payment should be increased to allow seniors to be able to afford everything needed.  Ontario has lifted the retirement age, and this is a positive start. I came across an article that discusses mandatory retirement issues in Canada titled, Probing the Future of Mandatory Retirement in Canada. It explained that, “…not all Ontario unions are opposed to eliminating mandatory retirement; for example, the Ontario Federation of Teachers (OTF) has recently stated that it feels secure with its pension plan regardless of what happens with this retirement policy” (Ibbott et al., 2006, p. 13). So there are mixed feelings with regards to lifting the retirement age in Ontario. Overall, as seen in the article, mandatory retirement discussions in Canada can spark heated debates when taking into account personal world views and other factors.

                                                          References

Ibbott, P. & Kerr, D. & Beaujot, R. (2006). Probing the Future of Mandatory Retirement in Canada. Canadian Journal on Aging. 25(2), 161. doi: 10.1353/cja.2006.0036

Marshall, K. (2011). Retiring with debt. Perspectives on labour and income. 15(19), 21-24. Retrieved from Proquest academic search database.  

Mullaly, R. (2007). The new structural social work (3^rd Ed.). Don Mills, ON: Oxford University  

Townson, M. (2010). Options For Pension Reform – Expanding the Canada Pension Plan. Canadian Center for Policy Alternatives. Retrieved from http://www.policyalternatives.ca/

Liberal views on the Elderly

The liberal view of society is that we should help others who need help as a result of capitalism because capitalism causes stress and breakdowns in society and society is then responsible to provide assistance.  Liberals take on this same view when speaking in terms of the financial situation of our elderly population, it to is a social issue according the the liberals.  Although the situation has improved over the years, most of the "baby boomers" are still employed but will not be in the near future.  This transition could cause more debt and financial crisis to Canadians.

Liberals say if we support the elderly we save our future.  Liberals believe that society should support the older population, not just for their own well being, but for the well being of society.  There are many elderly people to be taken care of, the population of elderly people is growing, (due to the baby boom)  therefore, so is the need for society to care for them.  Sometimes family members assist in taking care of the elderly, and in turn, this can cause a decrease in income for the family or family member and inability to work.  Liberals believe that if we assist the elderly and their caregivers financially, the result will be less of a financial crisis for the future society and less debt for our children.

Liberals believe in creating jobs and they believe in equal opportunity for all Canadian's.  By concidering the issue of the elderly now will allow preparation for the available jobs when the elderly population retires that will have to be filled.

Elderly people in Canada currently recieve income suppliments.  A journal article on Canadian Policies states that to assist the elderly "an income-tested Guaranteed Income Supplement (GIS), funded from general revenue, was introduced to support the elderly poor" Mahon (2008).  One of the liberals plans for action is to increase the GIS (guaranteed income supplement) for seniors. Seniors rely on this suppliment and a Canadian Pension and any other pensions or savings they may have to survive financially.

Liberal views are the views most taken by social workers becuase they involve the welfare of society.  That being said, If there is nothing done to attend to the growing numbers of seniors who require care we may suffer from economic breakdowns in society.  As the liberals say, help the elderly to help our future.

 References

Mahon, Rianne. (2008) Social Policy & Administration, 4(42), 342-361. doi: 10.1111/j.1467-9515.2008.00608.x

Gambling and Older Adults - Part I

Gambling and older adults (you-tube video) - 2011.

Welcome to our blog

We are a group of students taking the introduction to social welfare policy course 1310 at the University of Manitoba. Please bare with us as we are new to the world of blogging. We look forward to sharing knowledge, ideas, and thoughts related to the course content.