Quote:
Originally Posted by Jason14h
If a person doesn't have any income at 95 years old they are either on the street or someone is paying for them/it is having an effect
Personally I hate CPP, but when I see so many people who have no savings or under 10$k savings in their 30s I get why we need it
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Thing is, it's pretty crap at its job of being a social program.
If your 95yr old had never saved a nickel he'd get 1-2k monthly in social funding from various programs. Maxed out CPP could add 1k per month, but chances are it'd create some claw backs and most people don't max out. So it helps, but doesn't change a sparse living.
On the flip side for the right to that little top up a fairly avg Canadian could pay 25-50% higher taxes every year for 40 years. If you make more than 50k the impact gets smaller, but if you make less the impact is bigger. Imagine being a lower income CDN who's tax rate is effectively doubled so they can maybe someday get a couple hundred bucks a month in older years. To a value less than they paid in, unless they live to 90 or so. It's a steep bill.