The expanded CPP will not increase overall retirement savings.
For every $1 increase in CPP premiums, the average Canadian household reduced its private savings by almost $1.
The bulk of current contributions fund the benefits to current retirees.
Clearly, lack of a workplace pension does not doom someone to financial insecurity in retirement.
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 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.