Thank you very much. I appreciate the opportunity.
I did speak briefly about the opportunity that exists for private insurance companies. As we all know, Canada is very fortunate to have some of the best in the world to provide the pension gap that was mentioned earlier.
I would also like to add that in this current economic downturn, we also have Canadians who have defined contribution pensions and registered retirement savings plans, or who draw income from retirement income funds who have also seen their savings decline sharply in lockstep with the equity market and long-term interest rates. If a DB plan falls short of its obligations, the plan sponsor must fill the gap. But if a DC plan or RRSP suffers major losses, individuals do not have the flexibility to make up those losses. They are, for example, limited as to how much they can contribute annually.
To address this discrepancy and provide all Canadians with the same opportunity to save for retirement, the federal government could increase the tax-deferred contribution limits and allow DC and RRSP holders to save longer by delaying the age at which they must stop making contributions and start drawing down funds. This, as we know, is currently age 71. The government could also expand the types of investments one can hold in these plans and reduce the amount an individual is required by law to withdraw--the minimum percentage--from their RRIF plan each year.
We think that even though not all Canadians are financially able to reach their maximum annual limit, for those who are, these changes would be important in helping ensure their financial stability upon retirement.
Thank you for this opportunity.