Mandatory CPP contributions from working Canadians will increase steadily between January 2019 and 2025.
canada pension plan
CPP expansion could result in a $114 billion reduction in domestic investment from 2019 to 2030.
Canadians born after 1970 can expect a rate of return on their CPP contributions of between 2.3 per cent and 2.5 per cent.
The program is designed so Canadians who die early in life subsidize those who live longer.
The increased CPP tax alone translates into $1,624 more in taxes.
For retirees born after 1993, the CPP rate of return will be a meagre 2.5 per cent.
Reversing course and raising the age of eligibility for retirement benefits to 67 from 65 would be politically costly, but it makes eminent sense when one considers the aging of our population.