FORT ST. JOHN, B.C. – The Trudeau government has confirmed this week that a majority of Canadian provinces and Ottawa has agreed in principle to changes to the Canada Pension Plan, which will see increased mandatory worker contributions in exchange for higher taxable retirement benefits to be phased in over seven years, beginning on January first of 2019.
At last report all the provinces except Quebec and Manitoba had agreed to the deal which is likely to shape the future design of retirement plans across the country.
However, a new study by the Fraser Institute says workers, especially younger ones, will still receive a meagre rate of return.
Study co-author, Charles Lammam.
In addition, Mr. Lammam also contends the increase in CPP benefits will not help Canadians who need it the most, namely retirees who currently are experiencing difficult financial circumstances.
So Mr. Lammam concludes expansion of the CPP cannot be justified by claiming the plan provides a high rate of return for contributors.