It’s by no means unexpected, but 2024 is going to bring some tax hikes for Canadians when it comes to funding their retirement. Or, more accurately, funding the retirement of people a lot younger than you. But that’s what socialized pensions are all about. You pay more, and “others” get the proceeds.
Anyone who has paid into CPP since 2019 will receive higher benefits, but the full effects will take decades to materialize, so the youngest workers stand to gain the most. People retiring 40 years from now will see their income go up by more than 50 per cent compared to the current pension beneficiaries.
I paid into the CPP from day one, the max allowed. Had I been able to invest that money myself, the pension or annuity from the decades of accumulated cash would be three times my monthly CPP.
Yes, but then you wouldn’t be helping illegal immigrants, which is your right as defined by the charter (or whatever you call it).
WHY DO YOU HATE PEOPLE SO MUCH, YOU GREEDY CAPITALIST?
/s
Of course, there’s an “if” in there and many people would just buy more beer. Or weed. It’s socialism in action. Now that no one is having babies and people aren’t dropping dead a few days after they retire, if the Ponzi scheme is going to go on, something has to give. Or someone.
EXACTLY…
And I input the same VOWG – Max every yr…right up till 2017.
Bend over and receive yer pittance.
28th day of the month…
But, they weren’t able to off us yet as so many others were over the past 3 yrs.
We started living below our means as soon as we could afford to. From that point we had a savings goal and we never relented. I was self employed so no pension.
The key to saving money is the living below one’s means. That allows for some savings that you invest then grow. Start young so you have lots of time.
I think part of the problem with younger folks is, they want it all and they want it all right now. That is the recipe for poverty.
We need a Sask-Alberta pension plan.
No you don’t because it will end exactly the same way. We need to do away with pensions all together. The only pension anyone should have is their own savings.
Savings where?
Banks can go broke. Stocks can collapse.
How much do you trust the government? They can take everything you have in a heartbeat and there is nothing you can do about it.
They can try. However, they have no idea under what rock I have it squirreled…
Forty years from now there won’t be any retirement income.
We will work till we drop. Just like we did all through history.
Once you are no longer able to contribute, you had better have a family that will care for you in your dotage.
The government will give even less of a shit by then.
Unless the depopulation plan works, then there will be no families … just owners and slaves.
The whole county is a Ponzi scheme and the federal government is a Thief.
Every aspect of economic growth here is based on population growth. Or as I call it, Cultural-Societal-Resource Suicide.
(Ask a developer-home builder about a stable population and they’ll run screaming into the night or just shoot you.)
I’m sure lots of you smarty pants posters here – and not just UnThing – will give me all the reasons that we need constant, unabated growth and that I’m ignorant and stupid.
Perpetual growth on a finite ball in space will eventually hit the wall. We may have, already.
the constant rant of economists is ‘growth growth growth’.
there is an accompanying mind game called where does it end? this drive for ever bigger GDP cannot continue to infinity, and therefore must be flawed.
well it bloody well is flawed. for instance, builders and developers, what *are* they to do in a stabilized population need far fewer new homes? my answer: entropy. ie *existing* buildings are always needing repairs, add a room, shingles, paint so there is your work ,just not glamourous.
or do like the uber rich and demolish the previous perfectly good home for a snazier and bigger one.
104… not a bad age to retire!
I wonder if bulking up CPP assets through increased mandatory contributions is partially because the Federal government includes the CPP in its net debt calculations. CPP is supposed to be independent of the federal government so I’m not sure how it is valid to include CPP assets as government assets.
Gross debt in Canada is well over 100% so the federal government doesn’t like using that measure. Using net debt, including CPP assets, allows them to proclaim that Canada has the “lowest in the G7”. CPP assets being used this way might also be why the federal government will fight tooth and nail to prevent Alberta from taking out their share of CPP for a provincial Alberta pension plan.
If the federal gov’t doesn’t want AB (and maybe Sask?) carving out their own pension fund separate from the CPP, that’s reason enough for me to support it.
and the RCMP / provincial police too…
I think it’s a good idea but it’s up to CPP contribution members in each province to decide. The CPP is funded by employers and employers not the federal government or taxpayers. When the CPP was set up it included a formula to be used by provinces who wanted to remove their citizen’s share of the CPP assets.
If every province removed their portion, as allowed in its founding documents, the CPP assets would zero for the federal government. So, again, I’m not sure how the federal government is able to use CPP assets in its net debt calculations…it doesn’t own the assets.
I’ll write it again. They’re thieves.
And a bona fide criminal organization
Next up, they’ll be claiming homeowner’s property assets.
If there’s no property rights and I’m just the custodian, they can pay my Land Taxes, Property Taxes Maintenance and upkeep, then… Downside would be all the new immigrants moved into my home and garage..
supposed to be is not the same as is, and might explain the panic when alberta said pay us our contributions back…
the EI “fund” has a $24 billion deficit because the previous government stole it to make the books look better
The CPP was a Ponzi scheme from its creation in 1965 by the Libranos under Lester B. Pearson. The first eligible group of pensioners took out much more than they contributed. And it has been that way every since, which is why the contribution rate to CPP has been, and will continue to be increased.
Your facts are correct, but the conclusion is wrong. In fact, it is the other way around. Unlike the base CPP that has been around since the mid-1960s, first on a pay-as-you-go basis, then a modified pay-as-you-go basis, this enhanced CPP is being provided on a fully funded basis similar to the funding for a normal pension plan. This results in a cross-subsidy from younger employees to older employees. For the younger employee, this enhancement mostly balances out (cross-subsidizing the older workers initially, and receiving the cross subsidy later in their careers from the then younger employees). For the current older workers, although they don’t get as large of an increase in the pension (because they participate many fewer years), their entire period in the new plan is in their “being-subsidized” years. It is a good deal for them! Example, consider someone age 64 on Jan 1, 2024 who retires Dec 31, 2024, with earnings over the new maximum. He/she will pay an extra $188 contribution (and his/her employer will also pay an extra $188). This will provide him/her with about an extra $39 per annum (33% of increase in YMPE x 1/40 (since it takes about 40 years to get full benefit)). This enhancement is a financial benefit to them, just on a smaller scale because they are only accruing 1/40th of it.
This is how you keep a Ponzi scheme going.
There will be no CPP, EI, or any other money from the government except the planned $1400/person/month to everyone, payable back at tax time.
“Anyone who has paid into CPP since 2019 will receive higher benefits, but the full effects will take decades to materialize, so the youngest workers stand to gain the most. People retiring 40 years from now will see their income go up by more than 50 per cent compared to the current pension beneficiaries.”
Am I reading that wrong? So the youngest workers stand to “gain” the most? They stand to lose the most as they will put more into CPP and the average Canadian doesn’t even get back what they paid in. I read it was 60% is returned relative to what is paid in.
I tried to Google how much CPP does the average Canadian receive relative to how much they pay in but the Internet has changed since the old days it when gave the right answer.
Like EI – the asshole of payroll taxes – you’re forced to pay with no guarantee you’ll receive any amount.
That’s theft and its criminal.
Once you stop working, you’re part of the problem as far as the federal government is concerned.
Mathamaticians and statisticians can work the numbers till the cows come home and if they’re on the government teat their prognostications will be treated as gospel by the great unwashed. Critical independent thinkers on the other hand know a ponzi scheme when they see one. Bottom line as I tried to explain three years ago is that when governments bought into the ‘pension’ scheme, life expectancy was three score and ten, (70 years for the uninitiated). That broke down to a 45/5 ratio, you paid into a ‘pension’ scam for 45 years and drew benefits for 5. Very beneficial for the government since very few workers lived into their Sixties never mind their Seventies a hundred years ago. Canada was late to the ‘pension’ scam, but even when it was started in the 60’s life expectancy was a couple of years beyond 70. Fast forward fifty years, life expectancy is now around 80 years old and the ratio is out of kilter, now the ratio is 45/15, pay in for 45 years get benefits for 15. Now throw into the equation that government workers no longer work 45 years on average. Government pensions can now begin at 60 or lower, so the ratio is around 40/20>. Even some of the doofussies that advertise their banality here can understand that this is unsustainable. Factor in the number of new immigrants that are imported every year with their extended families that do not contribute for 45 years but still draw pensions and health care and you can understand why this country is bankrupt. So yeah, listen to your betters and double down on the government pension plan and we’ll all see the Klaus Schwabb future of owning nothing and being deleriously happy. Meanwhile the other government experimental program, to return us all to those wonderful days of yesteryear when three score and ten was considered a good life, somehow ran amok and the excessive death count numbers are rising in the still productive 25 – 55 age group instead of getting rid of only the useless (over 70) eaters and somehow we all accept this? Yeah, Buttercup, you keep believing what the governments keep spoon feeding you, me and a lot of others here have been wise to it for decades. Canadian governments couldn’t dispense free beer in the Sahara.
This may be true but these kids will also be stuck with the ludicrous debt that our Dear Leader incurred so we didn’t have to…and yes I know, many of them voted for this.