Expanded CPP will lead to reduction in private savings

And that means less money for a home down payment, education upgrading, to cover emergencies and for your beneficiaries

Expanded CPP will lead to reduction in private savingsBy Charles Lammam and Hugh MacIntyre The Fraser Institute Speaking to reporters on the newly minted “agreement in principle” to expand the Canada Pension Plan, federal Finance Minister Bill Morneau said “we are going to improve the retirement security of Canadians.” The agreement, however, will do nothing to substantially achieve this goal. Starting in 2019,…

People need less money to live as they get older? Not!

What we really need is an evidence-based public conversation about the consumption and income needs of Canadian seniors

People need less money to live as they get older? Not!The C.D. Howe Institute released a study just in time for the recent federal-provincial finance ministers’ meeting, rolling out the tired old argument that as people age they don't need as much money. If only retirement were so easy. The study focuses on Canadian public servants’ pension plans in particular – including those of teachers…

Finance ministers found solution to non-existent CPP problem

Despite agreement among finance ministers, CPP expansion is unnecessary

Finance ministers found solution to non-existent CPP problemBy Charles Lammam and Hugh MacIntyre The Fraser Institute This week in Vancouver, Canada’s finance ministers reached an agreement to expand the Canada Pension Plan (CPP) – a move that will eventually increase mandatory contributions (payroll taxes) on working Canadians. However, expanding the CPP is largely a solution in search of a problem. Contrary to…

Canada Pension Plan expansion huge mistake

The extended CPP proposal should have been rejected as an unnecessary increase in federal spending and government interference

Canada Pension Plan expansion huge mistakeThe federal Liberal government's plan to expand the Canada Pension Plan is a huge mistake. On Monday, the feds and most provinces reached an agreement in principle to revamp CPP. (Quebec and Manitoba have not signed on to the deal.) But it’s not surprising that Finance Minister Bill Morneau made this a topic for discussion…

Expanding CPP won’t help financially vulnerable seniors

Some low-income seniors could end up with a lower net income because it could result in a reduction in other government-provided transfers

Expanding CPP won’t help financially vulnerable seniorsBy Charles Lammam and Hugh MacIntyre The Fraser Institute Federal Finance Minister Bill Morneau will be meeting with his provincial counterparts on Monday to discuss expansion of the Canada Pension Plan (CPP) – a move that would involve increasing mandatory contributions (payroll taxes) on working Canadians to provide increased benefits in retirement. In the lead…

It is a myth that Canada has a retirement income crisis

Even after deducting debt of $1.8 trillion, Canadians are left with an accumulated net worth of $7.8 trillion outside the formal pension system

It is a myth that Canada has a retirement income crisisThe federal and provincial governments will soon meet in Vancouver to again discuss a possible expansion of the Canada Pension Plan and increase in mandatory contribution rates. There are several reasons to hope that wiser heads will prevail in opposing an expansion. After all, the statistical and intellectual arguments to expand the CPP are weak.…

Expanding CPP won’t help most financially vulnerable seniors

Seniors living alone are much more likely to be in low income than other seniors and won't be helped by any CPP expansion

Expanding CPP won’t help most financially vulnerable seniorsBy Charles Lammam and Hugh MacIntyre The Fraser Institute After years of debate, the Trudeau Liberals have rekindled the push to expand the Canada Pension Plan (CPP), with the federal government committed to achieving an agreement with the provinces. Finance Minister Bill Morneau will soon meet with his provincial counterparts to discuss options on how…

How General Motors brought socialism to America

GM CEO Charles Wilson established a pension plan that would invest in the broader U.S. economy to ensure the protection of his workers' pensions

How General Motors brought socialism to AmericaAround the mid-20th century, Peter Drucker was the go-to business guru. A strategically-placed copy of one of his management books graced many an office credenza, even if its contents weren’t always diligently read or put into operation. Drucker (1909-2005) was born in Austria in the waning days of the Habsburgs. He moved to England in 1933…

CPP benefits vary widely depending on when you were born

Study shows a marked generational gap in the benefits received

CPP benefits vary widely depending on when you were bornBy Jason Clemens and Joel Emes The Fraser Institute For working Canadians, contributions to the Canada Pension Plan (CPP) are a regular bill on their paycheques. Those contributions, however, secure a future benefit when they retire. The value of that benefit varies greatly depending on when one was born. The Fraser Institute recently released a…

Understanding CPP’s decline in rates of return for retirees

It’s critical to consider the rather meagre rates of return offered to most current and future workers in any debate about CPP reform

Understanding CPP’s decline in rates of return for retireesBy Jason Clemens and Joel Emes The Fraser Institute The proposed expansion of the Canada Pension Plan (CPP) is expected to be front and centre at the meeting of the provincial finance ministers in June. Unfortunately, many of the arguments for expanding CPP are either debatable or flat out incorrect. One source of ongoing confusion…