Desiree Finhert with files from the Canadian Press 2012/01/30
With comments from Aaron MacDonald of Foxgrove Benefit Consulting on News 95.7

Canadians are being warned to make more financial plans and rely less on government in their retirement following the Prime Minister’s plans to transform Canada’s pension system.

Prime Minister Stephen Harper hinted at changes to pensions last week when he spoke in Switzerland during the World Economic Forum and today changes to those changes will be the focus as members return to Parliament in advance of the federal budget.

The president of Gordon Stirrett Wealth Management said the world is changing and unfortunately the future may consist more of “the have, and the have nots” and Canadians need to prepare.

“The idea that you really have to look out for yourself. You’ll probably have to take care of yourself more in the future,” Gordon Stirrett told News 95.7. “There will be less reliance on government assistance.”

Stirrett is advising his clients try to put more money way, and that they may not retire until later in life.

“The reality that more people may work longer doesn’t mean they will work 40- or 50-hour weeks,” said Stirrett. “Many people will work part time, certainly through their mid to late 60s and early 70s. A lot of times too they enjoy the social interaction. They want to be active.”

The message from Foxgrove Benefit Consulting is Canadians should be diversifying their retirement portfolio and not become reliant on the Canada Pension Plan and Old Age Security.

“It can be changed. It can be eliminated,” said financial consultant Aaron MacDonald. “I always say the best way to ensure retirement is to look after yourself by contributing to personal investments, RRSP, non-registered accounts, the tax-free savings account and anything else that is available.”

Options for changing the public and private retirement systems include moving the eligibility age for Old Age Security to 67 from the current 65.

Critics of the initiative complain the Conservatives made no hints at cutbacks to pensions during last year’s federal election.