Its pre‑budget submission asks Finance Canada to lift the limit to 30% of earned income
The Canadian Forum for Financial Markets (CFFiM) wants the defined contribution pension plan and RRSP contribution limit raised to 30 percent of earned income from 18 percent, scaling maximum annual contribution room to $56,350 from $33,810.
All limits should be fully indexed to inflation thereafter, the forum said in a pre‑budget submission filed with Finance Canada on September 8.
The 18 percent cap was established in 1992 on demographic and economic assumptions that are now outdated, according to the submission, and was intended to give broadly comparable retirement saving opportunities across plan types.
It now significantly disadvantages Canadians in RRSPs and defined contribution plans, common in the private sector, relative to members of defined benefit plans, more prevalent in the public sector, arguing that a higher limit would improve equity across pension arrangements.
The forum set the case against US plan limits.
The 2026 contribution limit for a US 401(k) plan is US$24,500, roughly $34,400, with employees aged 50 to 59 and 64 or older able to add US$8,000 for a total of US$32,500, roughly $45,600, and those aged 60 to 63 able to add US$11,250 for a total of US$35,750, roughly $50,200, according to the submission.
Enhancing Canada's tax‑deferred plans would strengthen the country's ability to attract and retain talent.
CFFiM wants the RRSP‑to‑RRIF conversion age raised to 74 from 71, and mandatory minimum withdrawal rates reduced and ultimately eliminated.
Life expectancy at 71 stood at 13.7 years when the modern RRIF calculation was set in 1992 and is about 16.1 years today, per Statistics Canada figures in the submission, while the overall survival rate at age 95 has risen to 14 percent from 7.5 percent.
Removing annual minimums would primarily defer rather than forgo government revenue, the forum said, because withdrawals remain taxable when taken voluntarily or on death.
Registered plans should be opened, on a prospective basis, to eligible private equity and venture capital funds as qualified investments, the submission recommends.
Private capital suits retirement savings because of its long‑term horizon and potential for enhanced returns over time and admitting eligible funds would enlarge the pool of patient capital available to Canadian businesses, particularly innovative startups and high‑growth firms.
Workplace coverage sits behind the recommendations.
Only 37.6 percent of paid workers belonged to a registered workplace pension plan in 2024, the forum said, citing Statistics Canada, and a Canadian reaching 65 can expect to live about another 19 years if male and 22 years if female.
CFFiM wants Ottawa to treat capital sovereignty as a core component of economic policy and to reform tax, regulatory, and financial‑market rules that impede the formation, retention, and productive deployment of capital in Canada.
Capital concentration inside large banks and pension funds limits availability for deployment into growth‑oriented opportunities, according to the submission, which added that pension capital is not consistently anchored to domestic economic growth.
Canada is spending heavily on energy, defence capabilities, infrastructure, and strategic industries, said Laura Paglia, president and CEO of CFFiM, in the organization's announcement of the filing.
Paglia said the country "cannot strengthen its economic sovereignty without strengthening its capacity to finance those ambitions."
The forum is proposing a time‑limited listed income trust pilot, developed through fiscal analysis and public consultation, with objective eligibility requirements, disclosure, anti‑avoidance rules, published evaluation measures, and transition protection.
Demand for income‑producing investments matters as Canadians finance longer retirements.
