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If there is any significant intergenerational inequity in the pension sphere, it is with respect to the Canada Pension Plan. From 1966 to 1987, combined employee/employer contributions to the CPP were just 3.6% of the earnings base. Then the rate started ramping up and reached the current level of 9.9% of pay in 2003. This is indeed expensive since the real cost of the CPP benefits that are being earned for future service is closer to 6% of pay. The difference is the extra amount we need to pay to stabilize the funding of the program and to make up for the under-contributions of the past. Existing retirees did indeed get a free (or at least a subsidized) ride, especially those who retired before 2000.

In summary, today’s youth would be justified in thinking that they are worse off in some respects.

It does cost more for a university education or to buy a house. On the other hand, it has always been hard to get a decent job in the midst of a recession or a period of slow growth. Moreover, we shouldn’t take for granted that the modern world is better in so many respects.

Half a century ago, when today’s elderly were in their teens or twenties, there were no iPods, cellphones, dishwashers, dryers, microwave ovens, CD or DVD players, Internet or home computers. There were cars but they had only modest horsepower and air conditioning and FM radio were options that most people did without. Travel abroad was almost unheard of. Medicine was cheaper but also far less effective and access to a specialist was limited. Children wore hand me downs and discovered two or more cavities with every visit to the dentist. There was no cable TV and the antennas of the day might pick up half a dozen channels, usually with poor reception. Restaurant visits were infrequent. If we really yearned for the good old days, and settled for a genuine 1962 lifestyle, we would find it surprisingly affordable. The thing is, nobody today would opt for that lifestyle.

While young Canadians have many reasons to feel frustrated right now, their time will come. They might even be happy eventually that we maintained the pension programs and that expensive health care system. It is a safe bet that the youth of today will be the envy of the graduating class of 2060.

Fred Vettese is the Chief Actuary of Morneau Shepell and co-author of the book, “The Real Retirement” which is being released in January.