The latest tax increase is the payroll tax hike that will be used to finance CPP expansion.
canada pension plan
The CPP tax increase is just one of many tax increases imposed by the new federal government on middle-income Canadians.
In 2014, savings in non-pension assets totalled $9.5 trillion, dwarfing the $3.3 trillion assets in the formal pension system.
Proposed changes could result in thousands of dollars in extra contributions from working Canadians every year.
On Monday, Canada’s finance ministers announced an “agreement in principle” to expand the Canada Pension Plan (CPP), which will force Canadians to contribute more to the program.
Canadians may be forced to contribute up to an extra $3,250 more to the CPP each year.
Lack of a workplace pension does not doom someone to a financially insecure retirement.
In 2014, these non-pension assets totalled $9.5 trillion, dwarfing the $3.3 trillion assets in the formal pension system.
A two dollar increase in CPP income could result in a one dollar reduction in GIS benefits.