Quebecers with incomes of $40,000 or less, who have contributed to the QPP throughout their careers, are generally well covered by the retirement income programs currently in place, which are also referred to as Pillars I and II of the Quebec and Canadian pension systems.

Less well covered are private sector workers with incomes in excess of $40,000 who are not part of an employer-sponsored pension plan. Their number is estimated at around 800,000 workers.

The challenges facing these workers are all the greater as the financial reality indicates that savings must begin when you are young to have a tangible impact on retirement income. However, this unavoidable reality of financial planning is confronted with the needs and requirements of everyday practical life. At age 30, retirement concerns are less pressing than developing a career, establishing and supporting a family and maintaining a general lifestyle appropriate to their current and expected income. In this context, it is probably too optimistic to assume that rational and optimal savings decisions are indeed being made. However, the goal of saving for retirement remains important. Indeed, life expectancy is increasing and this phenomenon leads not only to a longer period to finance for retirement but also to a potential increase in medical expenses, with the fear that some may not be fully covered by the public health system. Are Quebecers ready to face such a possibility?

The main objective of this report is to propose mechanisms through which Quebecers are encouraged to save more. These are grouped under the general heading of Pensions 4-2.