CLR sits down with the president of the Ontario Teachers’ Pension Plan and co-author of The Third Rail: Confronting Our Pension Failures
In an ever-changing pension landscape, the Ontario Teachers’ Pension Plan (OTPP) has not only kept its pension promises, but also reported profits. Herewith, Leech sheds light on the growing pension gap, his new book and his own retirement plan
Pension funding has taken a hit in recent years. What are the factors contributing to the growing gap?
Pension funding has taken a hit in recent years. What are the factors contributing to the growing gap?
There are three factors. One is that Canadians are not saving enough for their future. Pretty well all the reports — if you go to the C.D. Howe (Institute) report — it suggests you save between 11 and 20 per cent of your income over 35 years to get to what they were targeting — a 70 per cent replacement. Right now Canadians on average are saving about 5.5 per cent. So they’re not saving enough.
