The federal government's budget, Economic Action Plan 2012, may be ground-breaking both for its changes to the eligibility age for Old Age Security (OAS) and the disappearance of the penny. But for a government that wants to get its fiscal house in order yet build long-term prosperity, it is a balancing act. And that will require some balancing, too, on the part of professional financial advisors as they work with their clients to build their long-term prosperity.

The federal government's Economic Action Plan 2012 is squarely onside to eliminate the deficit by fiscal year 2014-15 — without introducing draconian budget cuts or new taxes. In fact, Finance Minister Jim Flaherty's budget "remains focused on an agenda that will deliver high-quality jobs, economic growth and sound public finances.”

Corporations, for the most part, were left alone in the 2012 Federal Budget with only some tinkering and fine-tuning applied.

The federal government's Economic Action Plan 2012 will change Canada's retirement system in significant ways. Here is what's ahead:

The proposed changes:

Every so often a budget makes historic changes; the March 29, 2012, federal budget or Economic Action Plan 2012 is such a document. It will be remembered for three milestones: