FOR IMMEDIATE RELEASE:
July 21, 2015
SIMCOE – A new study by the Fraser Institute predicts there will be no gain in people’s life savings when the Ontario Retirement Pension Plan is implemented.
The study looked at the savings of individual Canadians in the late 1990s when contributions to the Canada Pension Plan were increasing and compared it to the first four years following the increases. The study found when contribution to a government-run mandatory plan was increased, Canadians decreased their voluntary savings through vehicles like RRSPs. The study concluded there was no net impact on people’s retirement savings.
“This study reinforces the pointlessness of the Ontario Retirement Pension Plan,” said Haldimand-Norfolk MPP Toby Barrett.
Although the study didn’t examine the impact of the plan on employment, Barrett added it could discourage industry and business, which will lead to fewer jobs and thus decrease savings. Business and industry will have to contribute a matching share to the ORPP.
“Even government predicted there could be an impact on business,” Barrett said. “This concern was ignored as the government forged ahead.”
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For more information, contact MPP Toby Barrett at 519-428-0446 or toby.barrett@pc.ola.org