Madam Speaker, I am proud to rise in the House to speak to Bill C-26, an act to amend the Canada pension plan, the Canada Pension Plan Investment Board Act and the Income Tax Act.
Since being elected a little over a year ago, I have had many conversations with my constituents in Mississauga—Streetsville, ranging from security for seniors to things that concern youth. However, one of the more consistent concerns that has been brought to my attention is what our government is doing to help working-class Canadians who are looking to retire.
Many of my constituents have contacted my office and explained to me that even though they have been working hard their entire adult life, they are not confident they can safely retire. I know my constituents are not the only Canadians who have such concerns. All across the country, middle-class Canadians are working harder than ever, yet they are deeply concerned that they do not have enough money saved for a stable retirement.
More than one-quarter of Canadian families are nearing retirement and each year fewer and fewer Canadians have workplace pensions to fall back on. This leaves approximately 1.1 million families facing the intimidating risk of not having enough money saved to maintain their standard of living when they retire.
These Canadians fear that because of this, they will have to work for longer than they had planned and ultimately miss out on spending precious time with their families. As a result of this, a grandfather may not be able to take his grandchildren on a camping trip or may miss their sporting events because he could not get time off from work. A mother may have to cancel the road trip she was planning with her daughter for years, because she was called in for a last-minute shift. Ultimately, many Canadians will miss out on many important moments.
However, it is not just families nearing retirement that are concerned with this issue. Over the past year, I have met with any young Canadians who are just finishing school and are about to enter the workforce. They are concerned that with fewer jobs offering workplace pension plans, they will find it difficult to save enough of their earnings for a stable retirement.
It is no secret that Canadians are living longer lives. Although we should be grateful for this, longer life expectancies ultimately mean that the level of savings required to achieve a stable retirement is increased. With the population of my riding expecting to grow by 4% over the next 15 years and 6% over the next 25, there will only be more constituents with the same concerns if these issues are not addressed. However, I am confident that this bill addresses the concerns of my constituents and many Canadians across the country.
With all nine Canada pension plan participating provinces confirming their support, I know I am not the only person who has confidence in the bill.
Once it takes effect, Bill C-26 will increase the maximum Canada pension plan retirement benefit by roughly 50%. Currently, the maximum benefit is $13,110. However, after this enhancement, the number will increase by roughly $7,000 for a maximum benefit of $20,000.
Bill C-26 would do two very crucial things. It would increase the amount of money Canadians would get from their pension from one-quarter of their earnings to one-third. This means that a hard-working Canadian making $50,000 annually would received $16,000 annually in retirement. The bill would also increase the maximum income range covered by the Canada pension plan by 14% so that those who earn more will receive more in retirement.
We have heard from our colleagues that they are concerned that the cost of the bill would put a significant strain on taxpayers. To answer this, the government is ensuring that the changes in contributions will be phased-in slowly over seven years, which will give individuals and employers sufficient time to adjust to the minor increase. For low-income workers who may be concerned about the change in contributions, the legislation would provide an enhancement to the working income tax benefit designed to provide additional benefits that would offset the incremental Canada pension plan contribution.
Furthermore, it is important to note that contributions to the enhanced portion of the Canada pension plan will be deductible. Providing a tax deduction for new employee Canada pension plan contributions will avoid increasing the after-tax cost of savings for Canadians. For employers, employer contributions to the enhanced portion of the Canada pension plan will be deductible for income for tax purposes. For self-employed Canadians who contribute both the employer and employee share of the Canada pension plan, they will be able to deduct both the employee and employer share of contributions to the enhanced portion of the CPP.
Last week, I visited many local high schools and spent time speaking to hundreds of students. When discussing the proposed Canada pension plan enhancement, these young individuals overwhelmingly supported the legislation. They understood and supported the idea of small, incremental increases in contributions to ensure a secure and stable pension.
It is young people like the ones I met last week who will be inheriting the policies and programs we create today. The support of these young people should be a testament as to why all members in the House should support the bill. We, as members of Parliament, must think of them when debating legislation in the House. I am confident the bill will have a positive impact on the future of young Canadians, which is why I am proud to be speaking to the bill today.
During my campaign last year, I had many young volunteers helping me. When I was elected, I promised to be their advocate in Ottawa. By standing here today to speak to the bill, a bill that would have a positive impact on their future, I know I am fulfilling that promise. The positive impact the bill can have is truly significant. The bill would ensure that every Canadian worker could retire with a safe and secure pension. Young Canadians entering the workforce could enter with confidence, knowing that legislation would be in place to ensure they would have enough saved when the time comes for them to retire.