Boost CPP payroll deductions, tax policy report suggests

A new report says there are steps the government can take to ensure Canadians have enough money in their retirement – and they don't have to be sweeping measures to make a difference.

University of Calgary experts also say Canada Pension Plan eligibility age could be 67

Tax policy expert Jack Mintz calls on Ottawa to take steps to shore up the Canada Pension Plan. 8:00

A new report says there are steps the government can take to ensure Canadians have enough money in their retirement —and they don't have to be sweeping measures to make a difference.

The paper by the University of Calgary's School of Public Policy says Canadians have had a tougher time saving for old age since the 2008-2009 economic crisis, especially those with modest incomes.

The authors suggest that the Canadian Pension Plan be expanded to enable 35 per cent of a worker's income to be replaced in retirement, up from the current 25 per cent level.

Report co-author and tax policy expert Jack Mintz says anything larger could hurt Canadians, especially younger ones looking to buy a house or start a family.

The paper says the eligibility age for CPP benefits could be increased to 67 to minimize a payroll tax increase and contributions should be tax-deductible.

And the report says the age limit for Registered Pension Plans and Registered Retirement Savings Plans should be hiked to 75 from 71 to reflect an increase in life expectancies.