The expanded CPP will not increase overall retirement savings.
cpp costs
For every $1 increase in CPP premiums, the average Canadian household reduced its private savings by almost $1.
Mandatory CPP contributions from working Canadians will increase steadily between January 2019 and 2025.
Nine-in-10 Canadian families with children will pay, on average, $2,218 more per year.
CPP expansion will mean several thousands of dollars more in annual contributions from working Canadians.
High marginal effective tax rates weaken the incentives for people to earn extra money.
The Fraser Institute has been at the fore of publishing work related to pension issues and correcting misconceptions to provide Canadians with better information.
Despite its reputation, the cost of the CPP is actually above the average for comparable plans based in Ontario.