CHARLOTTETOWN — The federal finance minister says he hopes to leave Prince Edward Island with an agreement on the direction that pension reform in Canada should proceed.

Jim Flaherty meets today and tomorrow with his provincial counterparts on the island.

Flaherty is proposing what he calls a "modest" and gradual increase in Canada Pension Plan payroll premiums, plus pension innovations in the private sector and improved financial literacy among Canadians.

It comes amid fears that a growing number of people aren't squirreling enough cash away for their retirement years -- especially people in the middle class.

Flaherty says it has taken two years to gather input from Canadians and any changes will also take considerable time.

He says the government will take a "do no harm" approach to pension reform.