Thank you for the question.
The fiscal impact of a major uptake in people saving for their own retirement--if they were to do it in a massive amount--would be a loss in tax revenues. If we propose that you double or triple the CPP or everybody takes up all the available RRSP room, or they join a UPP and in each case get the current state of tax deduction for making that contribution, then obviously there will be a major impact on tax revenues.
What should the government do when it is faced with a huge uptake in contributions in the short term with the attendant tax revenue laws? They need to think further along to realize that without this kind of investment today they will be paying it out--if they have a mind to do so--through increases in GIS costs down the road. They are going to be making up those differences for people who find themselves on hard times, similar to the impact on health costs because of people's financial insecurity. Those things are all net costs in the longer term. So there is going to be a fiscal impact if Canadians take up the opportunity to save for their own retirement using tax-deferred vehicles. Any one of the above will have the same impact.