For retirees born after 1993, the CPP rate of return will be a meagre 2.5 per cent.
From 2015 to 2017, Canada ranked second lowest among 17 comparable countries in annual investment as a percentage of GDP.
Since forming government, the Liberals have announced several tax hikes and more may be on the way.
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.
The evidence does not support claims of a widespread retirement savings problem in Canada.
An expanded Canada Pension Plan naturally comes with higher CPP taxes.
The Liberal government remains committed to a misguided fiscal policy approach that spends borrowed money in the hopes of increasing prosperity.
The rate of return Canadians—especially younger workers—will receive on their CPP contributions is meagre and will remain so even after expansion.
Canadians born in 1971 or after can now expect to receive a meagre rate of return from their CPP contributions of between 2.3 per cent and 2.5 per cent (depending on their specific year of birth).
The returns of the CPP's investment arm in no way influence the CPP retirement benefits received by Canadian workers.