Unlike an RRSP or TFSA, the CPP does not allow Canadians to withdraw money early.
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.
For retirees born after 1993, the CPP rate of return will be a meagre 2.5 per cent.
The rate of return Canadians—especially younger workers—will receive on their CPP contributions is meagre and will remain so even after expansion.
In 2014, savings in non-pension assets totalled $9.5 trillion, dwarfing the $3.3 trillion assets in the formal pension system.
Canadians may be forced to contribute up to an extra $3,250 more to the CPP each year.
Accounting for non-pension assets in projections of future retirement income makes a difference.