The question of whether CPP is a good deal should be what is the equivalent cost of a lifetime gurenteed defined benefit plan cost on the private market. Are there any similar products out there right now and if so what do they cost?
I do think one issue with the CPP now though is that the liabilities from underfunding for years are being born by the CPP and rather than by the government. So one portion of the CPP is an investment the other portion is tax recovery. If you got rid of the tax recovery portion you could make a much better assessment on the value the CPP brings and be much more transparent on the boomer tax.
|