The pension reform debate is once again heating up, with a focus on increasing retirement benefits for middle class Canadians. The issue is expected to be a key topic in the upcoming December meeting with Finance Minster Jim Flaherty. There is strong support for reform from top dignitaries such as Wes Sheridan, Minister of Finance for Prince Edward Island.

The proposal circulating would require Canada Pension Plan (CPP) contributions to increase from $2,356.20 to $4,681.20 annually. This would increase the maximum benefit to $23,400 from the current $12,150, with the amount required to qualify moving up to $102,000 from $51,000 at present.

Hesitation in pursuing the proposed plan has been expressed by several parties concerned about the current fragile state of the Canadian economy. Nonetheless, the overall purpose of the initiative is to raise the savings rate of the middle class given that Canadians are not saving enough money to enjoy a comfortable retirement.