Quote:
Originally Posted by Delgar
Ponzi scheme is indeed too strong of a term, but only because CPP is not a fraud. There are are parallels however.
The reason CPP is properly funded is because the relative contributions for those currently working have been increased proportionately, while those retired are the ones getting the benefit. In the proverbial robbing Peter-to-pay-Paul story, Peter is paying Paul via CPP, but it is transparently happening, and the government is planning to pay Peter from the workers how come next. It is about one generation paying for the one after it. That has parallels to a Ponzi scheme if the system collapses on itself.
Edit: I just checked, and the unfunded liabilities for CPP is close to One Trillion Dollars. That is very much like a Ponzi scheme.
Edit 2: Wow, contribution rates have actually tripled over the last 15 years. That is quite Ponzi-ish.
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Not sure if mentioned but if you die before the age of 65 then the government gets to keep your cpp. Not your kids, not your spouse. Actually your spouse gets a small percentage that is laughable.
To me this is criminal. You invested your whole life working hard then the government gets it?
How much has the government made in not paying cpp because of early deaths?