No pension panic

Lately, the business sections of newspapers have been full of stories talking about the pension funding "crisis" in Canada and around the world. The headlines have been alarming: "Pension Shortfalls Threaten to Explode ..." "Pension Plans Face $225 Billion Shortfall ..." "Companies' Pension Shortfalls Could Destroy Retirement Dreams ..." "A Time Bomb is Ticking in Pension Plans ...". Those who are signaling the alarm about the so-called "crisis" primarily come from the pension and investment industry and the corporate financial sector. They continuously have been warning us that the future of workplace pension plans is in jeopardy; that the sky is falling! These alarmist headlines are likely to scare many working people and their families. After years of paying into a decent workplace pension, they might be now asking whether their pension plan will be able to provide them with financial security in retirement. They probably want to know what's happening to their pension. Is it safe? Is the sky really falling? This answer is no, the sky isn't falling. This is in large part a manufactured crisis, designed to attack quality workplace pensions and allow employers to abrogate responsibilities to their employees.