A pension system that works for everyone

Canada’s retirement system is failing the people it was built to serve. The combined maximum CPP and OAS payment leaves the average Canadian retiree with a net pension replacement rate of just 45% of their working income — among the lowest in the developed world and well below the OECD average of 63%. In Austria, long-term contributors receive 87% of their average lifetime net income in retirement. In the Netherlands, 96%. Canada is not a poor country. There is no excuse for this.

The Common Good Party is committed to a fundamental reform of Canada’s retirement system — one that delivers genuine security to every Canadian who has worked and contributed, not merely a floor that keeps seniors out of destitution while forcing them to choose between medication and groceries.

Our goal: every Canadian who has contributed throughout their working life should retire with access to at least 75% of their average lifetime net income — consistent with the standard achieved in nearly half of OECD member states, and a realistic target for a country of Canada’s wealth.

A Universal Pension Fund — Everyone Contributes, Everyone Benefits

We are committed to a universal pension fund into which all working Canadians contribute. This means members of parliament, the self-employed, board members, and executives — not just salaried employees.Those who set pension policy should live under it. Those who benefit most from the Canadian economy should contribute proportionally to the retirement security of the people who built it. Quebec administers its own Quebec Pension Plan and will be engaged as a full partner in any national reform. No reform will proceed without meaningful consultation with Quebec and the provinces.

No Working Yourself Into the Ground

We reject any increase in the retirement age. A Canadian who has contributed for 40 years has earned the right to retire with dignity, without penalty and without being told to wait longer. Retirement should be a reward for a lifetime of work, not a moving target.

A Poverty-Proof Minimum Pension

No Canadian who has worked and contributed throughout their life should retire into poverty. We will establish a minimum pension tiered according to years of contribution, ensuring that those with lower lifetime earnings are protected. This is not charity. It is the return on a lifetime of participation in the Canadian economy.

The federal government currently contributes approximately 2% of GDP to pension support. We commit to raising that contribution progressively to at least 3% of GDP, funded in part through the Citizen Dividend generated by the public ownership of Canada’s Strategic Five industries — so that the wealth Canadians generate throughout their working lives continues to support them in retirement.

Better Than Any Private Plan

No private pension plan, RRSP, or investment product offers the security, predictability, and value of a well-funded universal public pension. When retirement savings flow into financial markets, banks and insurance companies take their cut. The risk falls on the individual. The CGP rejects the privatization of retirement security. A pension is a right earned through work, not a financial product to be sold.

Tax Relief for Modest Pensions

Canadians who have contributed throughout their working lives and retire on a modest income should not face a significant tax burden on that income. We will raise the pension income tax exemption threshold so that seniors receiving below-average pensions keep more of what they have earned, without fear of clawbacks or complex eligibility assessments.

Good Wages and Productivity Secure Pensions

A sustainable pension system rests on a productive, well-paid workforce. This is why the CGP’s broader economic program — breaking up the oligopolies that suppress wages, investing in infrastructure, backing small and medium enterprises, and building the trades workforce Canada needs — is not separate from pension reform. It is the foundation of it. Canadians are not only living longer; they are becoming more productive. A pension system built on that productivity, rather than on financial speculation, is both affordable and durable.

The CGP commits to beginning the legislative groundwork for universal pension reform in its first term, with a phased implementation plan developed in full consultation with Canadians, the provinces, labour organizations, and pension experts.

Every Canadian who works deserves to retire with dignity. That is not an aspiration. It is a commitment.