The Investment Funds Institute of Canada continues to voice its concerns around the Canadian retirement savings system, calling for policymakers to facilitate the creation of more employer-sponsored retirement plans, and to recognize the value of financial advice.

On Friday, IFIC published submissions it made to the Nova Scotia Ministry of Labour and Workforce Development, and the Alberta Ministry of Finance and Enterprise. These submissions were made in response to requests for comments on the provinces’ respective pension and retirement savings consultation papers. Both offer recommendations for improving current retirement savings programs.

“Across this vast country, we are all engaged in an important discussion related to retirement savings system reform, the outcome of which affects each and every Canadian,” said Joanne De Laurentiis, IFIC president and CEO. “Reforming Canada’s retirement savings system is achievable. There is no single solution for every concern; however, there are a good number of measures that can be implemented quickly.”

In its submissions to Nova Scotia’s Discussion Paper on Pensions and Alberta’s Pension Consultation Paper, IFIC presented the following four recommendations:

1. Make it easier and more appealing for employers, and particularly small- and medium-sized businesses, to establish retirement plans affordably.

2. Encourage increased participation in employer or individual retirement savings plans through the introduction of automatic enrollment and contribution escalation features, and financial education.

3. Ensure equivalent retirement-related tax benefits for all Canadians, whether they are in the private or public sector, both before retirement and while in retirement.

4. Understand the value and significant advantages of Canadians’ access to financial advice.

In line with this fourth proposal, IFIC urges the government to include an advisory component in reform efforts, and to recognize that plan participants may wish to consult an advisor at their own cost as they near retirement.

“A ‘one-size-fits-all’ model is unlikely to satisfy everyone,” IFIC says. “It is unlikely that most plan participants would want to transition into retirement without consulting an advisor.”

For middle income earners in the private sector, IFIC adds, advice is particularly critical.

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