The Conservative government is asking provinces and territories to support a "modest" and gradual hike in Canada Pension Plan payroll premiums to cover increased benefits as governments plan a response to widespread concern that Canadians simply aren't saving enough for retirement.

The proposal from Finance Minister Jim Flaherty, which he said should be combined with tax changes to encourage more voluntary saving, is revealed in a letter sent to his fellow finance ministers on Thursday.

Read the entire Globe and Mail article here.