The bulk of current contributions fund the benefits to current retirees.
canada pension plan
The expanded CPP’s overall rate of return for workers is a meagre 2.5 per cent.
Clearly, lack of a workplace pension does not doom someone to financial insecurity in retirement.
Mandatory CPP contributions from working Canadians will increase steadily between January 2019 and 2025.
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.