There is currently a debate happening at the Federal and Provincial Level involving retirement affordability. Some politicians are suggesting an overhaul to the Canada Pension Plan; still others are having discussions on new Provincial Pension Programs. All roads lead to the possibility of increased pension benefits within these proposals. So who doesn’t want a bigger pension?

The key issue revolves around funding mandatory pension programs. As you know, the current CPP program is funded by both the employee as well as the employer. So any consideration for enhanced benefits may result in higher payroll taxes for both parties. Profitable corporations and high income earners may be able to support such an initiative, but what about small corporations and low income earners who may be stretched to the limit already? And what about self-employed individuals who pay both portions of the CPP payroll tax? All of a sudden it’s not that clear!

When I think back to my own personal upbringing, I remember the sense of accomplishment when I achieved a specific goal. Mom and Dad were more than happy to provide a basic pair of running shoes for my back to school needs. However, the much more costly pair of Adidas runners was only an option if I earned the money to make the purchase myself. Once I was able to determine the importance I placed on the expensive runners, it was much easier to make personal changes or sacrifices to achieve my goal of the nicer shoes.

Now I realize that retirement affordability is of much greater importance than a young boy wanting nice shoes. My point is that when we are given a chance to achieve our goals without undue influence from others, our result is far more rewarding. So I believe that more help may equal more complacency and may continue to increase our need for government intervention into the future, whereas when we take responsibility for the things that are important in our lives, our personal efforts will reward us far beyond any government supports.