Personal Finance

Understanding the "enhanced CPP" changes

  • Last Updated:
  • Oct 18th, 2017 11:57 pm
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45 replies
Deal Fanatic
Jul 1, 2007
7879 posts
730 upvotes
Won't matter. A future government will undo these changes.
Money Smarts Blog wrote:
Nov 29th, 2010 11:18 am
I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Deal Expert
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Oct 26, 2003
26832 posts
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Winnipeg
a whopping 1% increase over 15 years, that's so gonna change everything...
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Deal Fanatic
Mar 24, 2008
5091 posts
1169 upvotes
Toronto
$16/month more in 2067... don't spend it all in one place :)

Anyways, thanks Doug, it is a good article.
Illegitimi non carborundum
[OP]
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Dec 12, 2012
449 posts
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Courtenay
divx wrote:
Oct 13th, 2017 2:00 am
a whopping 1% increase over 15 years, that's so gonna change everything...
Just to clarify, that's a 1.3% increase yearly after 2024. So after 15 years the net increase will be approx. 17.6% above 2019 rates.
Deal Expert
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Oct 26, 2003
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Dogger1953 wrote:
Oct 13th, 2017 11:33 am
Just to clarify, that's a 1.3% increase yearly after 2024. So after 15 years the net increase will be approx. 17.6% above 2019 rates.
still peanuts, cpp is just one of many retirement investment vehicles out there, you aren't supposed to rely on only one
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Deal Addict
Dec 28, 2008
1336 posts
128 upvotes
Toronto
CollegeGraduate wrote:
Oct 15th, 2017 1:24 am
I wish I can opt it out. It is bad to be self employed.
You can if you pay yourself dividends from your corporation instead of a salary (increased tax efficiency too).
Deal Addict
Jul 3, 2006
1116 posts
174 upvotes
they should just give people option to put money in RRSP or CCP.. i can make pay my self better.
Jr. Member
Mar 16, 2011
176 posts
55 upvotes
J_u_n_i_o_r_3 wrote:
Oct 15th, 2017 10:17 am
they should just give people option to put money in RRSP or CCP.. i can make pay my self better.
Wasn't that the TFSA program for as well? Wish it was bigger.
Deal Addict
Feb 29, 2012
2367 posts
1190 upvotes
Richmond
chopperE wrote:
Oct 15th, 2017 10:41 am
Wasn't that the TFSA program for as well? Wish it was bigger.
Unfortunately you can't elect to put your money into RRSP or TFSA instead of CPP since it's not optional.

The issue is of course that successive governments under-funded the CPP program and passed the buck to future generations. These changes are pretty much more of the same. Sorry about that future generations. But hopefully you won't care when you're starving in the ruins of our civilization left by the climate change we caused, so hey, there's a silver lining to everything! :)
Deal Addict
Jul 3, 2006
1116 posts
174 upvotes
SO basically I created a quick excel sheet with numbers to show RRSP is way better then CPP for someone who knows what they are doing or has a good investment manager. I know CPP contribution right now between both employee and employer is under $6000 and by 2022 it will be more, but to make things simple I used $6000 per year. To get maximum benefit of $1114.17 (2017 number I know it will be greater in 37 years based on inflation) you have to contribute the maximum for 37 years. For my numbers in RRSP I used 10% avg return which is achievable.

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Oct 26, 2003
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10% is way too high, you can't average that high every year. cpp investment is fine the last time i heard.
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Deal Addict
Jul 3, 2006
1116 posts
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divx wrote:
Oct 15th, 2017 1:33 pm
10% is way too high, you can't average that high every year. cpp investment is fine the last time i heard.
LOL I Know people avg way over 10%... I just used that number cuz its easier... Not saying CPP wont make it ... its which one gives you more money at retirement. Even if CPP AVG at 10% its not like your going get more then there defined maximum at that time

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