Mr. Speaker, it is a pleasure to rise today to share my enthusiasm for Bill C-26 and the updates being proposed for the Canada pension plan. The ability to have a safe and secure retirement is something that is incredibly important not just to Canadians broadly but to the folks in my riding of Pitt Meadows—Maple Ridge and to me. They are rightly concerned about what retirement will look like for the young people in our communities. This is an issue I hear about from constituents, and there is a wide Canadian consensus that this is a very real issue for millions of Canadians. By taking action now, we are securing a future Canadians can count on.
When the CPP was introduced in 1965 by then Prime Minister Pearson, it took both courage and fortitude to introduce a program that had a long-term, not just a short-term, vision for this nation and its workers. Millions of Canadians today benefit from the Liberal government's bold action at that time. Today we are witnessing the same courage and commitment to the long-term economic prosperity of Canadians by the Minister of Finance, the Prime Minister, and all those in this House who are thinking about Canadians not three or four years from now but in 50 years. I know that the generations to come will look upon this Parliament for its strength and willingness to do the right thing.
Families and workers across this nation have had an overwhelming desire to look to the federal government for national leadership on this issue. For far too long, this leadership has been lacking, and I am proud to stand in this chamber and be part of a government that is listening and responding, not just to the short-term needs of Canadians but for the long-term success of our nation.
Canadians today are working harder than ever to keep up with the financial demands of today's economy and to save for the future. The enhancements to the CPP are part of a comprehensive and multi-dimensional approach our government is taking to invest in Canadians today and for the future. The improvements to the CPP in Bill C-26 will be an investment economically. Perhaps more importantly, when it comes time for Canadians to retire, they can do so with dignity.
I have heard a lot over the last few days about how 85% of Canadians are supposedly ready for retirement. I do not see that in my community. When I talk to seniors in my community, they are struggling. Even with the CPP, the GIS, and the OAS, they are struggling. It is not enough for them today.
Today we are looking to the future. We are looking to make sure that our youth are in a good position. When I knock on doors and meet people in my riding, it is no secret that hard-working families are worried that they and their children will not have enough money set aside for retirement. I have had countless conversations with a wide variety of constituents, and it is clear that this concern is present across all demographics.
Youth in my community are facing many challenges in ensuring that they are saving enough for retirement. Young people understand the reality they face today and in the future. They know that fewer of them will work in jobs that will guarantee a workplace pension, like perhaps most of their parents had. There are a lot of factors, including a shifting economy, a change in culture, and a boost in entrepreneurial spirit.
The reality is that fewer young Canadians in this era can expect to have a single employer throughout their careers, as many once did decades ago. In addition, fewer employers are providing opportunities to save. Studies have found that in 2011, only 11.1% of the workforce was covered by private workplace pension plans, which is down from 28.6% in 1982. At that time, only a quarter of Canadians who earned between $40,000 and $60,000 contributed to RRSPs.
The CPP was established in 1965. I know that members opposite like to joke about what year it is, but it is 2016, and the labour market simply is not what it once was.
The CPP needs to be enhanced to reflect the realities of today and the anticipated changes of tomorrow. It is the responsible thing to do in response to a big challenge facing Canadians today. The enhancements to the CPP are well thought out and responsible. CPP contributions will increase modestly over seven years, starting in 2019, and when fully implemented will significantly reduce the number of families at risk of not saving enough money for retirement.
In my riding, when I talk to my constituents, I ask if they are saving money. From age 20 to age 50-plus , everyone is struggling to save money. Without the CPP we have today, where would our seniors be? It is a struggle already. The enhancements will boost how much Canadians will get from their CPP by increasing the earning range covered by the plan, resulting in an increase of up to 50% in benefits. As a result, these enhancements will increase the maximum CPP benefit by about 50%. The current maximum benefit is $13,110. In 2016 terms, the enhanced CPP represents an increase of nearly $7,000, to a maximum benefit of nearly $20,000. If we look at the children this is going to affect, are they really going to be able to survive on $13,000? Is that where we want to put our children, struggling at that point? We need to do this today for the future.
Numbers aside, there is a reason there is support on both sides of the House and across the nation for enhancement. All the provinces have agreed to do this. It is because it is what Canadians have been calling for. Canadians know that a secure retirement means secure access to healthy food, an ability to afford adequate housing, and the capacity to travel to see their children and grandchildren if need be.
I would also like to emphasize that as a small-business owner myself, all politics aside, I support the enhancements to the CPP outlined in Bill C-26 because it is the right thing to do. Bill C-26 will ensure the financial security of many employees down the line. It will help those who each and every day put their hard work into the success of my business and all businesses. The enhancements to the CPP are being slowly introduced over seven years to reduce the impact on small business.
This is smart policy-making that has rightfully gained the support of many small-business owners like me. When seniors and middle-class families have money, they can spend that money in the local economy. As a small-business owner, and as a member of Parliament and a member of my community, I do not wish to see any seniors living in poverty and without the dignity they deserve. The much-needed enhancements to the CPP proposed in Bill C-26 are something I can be proud of having voted in favour of and something I know will ensure that millions of Canadians have a retirement they deserve down the line.
I want to conclude by acknowledging the leadership our government has shown in making the tough decisions that will benefit Canadians not only today but for generations to come. I think this demonstrates a sincere willingness to think beyond the next election cycle, something the previous Conservative government put before the best interests of Canadians. The enhancements to the CPP are something Canadians have been demanding for years, something the provinces and territories, organizations, think tanks, and workers' representatives have been advocating for.
The time is upon us. I welcome all members to reflect on what it would be like to work an entire lifetime, a lifetime in which every extra dollar has gone to putting healthy food on our family's table, and to wake up in retirement and have to go back to work to put food into our own mouths.