Quote:
Originally Posted by stampsx2
Exactly, leaving more room for additional contributions such as a tfsa. That $200 cpp contribution would go much further if each canadian had to invest it themselves.
If i'm not mistaken you can also put away for retirement through life insurance policies which i think were a better option than cpp.
The problem with voluntary some will argue that too many canadians would not put anything away leaving them stranded at retirement.
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Well the proposal would see the current amounts stay mandatory, but give people the option to add more (up to double from what I've seen). So people wouldn't really be stranded for retirement, at least no more than they are now.
I do think that people could do as well on their own if not better (more flexibility and more options, more command about when and how much withdrawals will be and that sort of thing). There is a segment though where if they made the decision once to have this come off their cheques and forgot about it, where they would be much better off than trying to do it on their own. People get paralysed by the sheer amount of options available, and then have issues with procrastination in general. I'm obviously not saying this is everyone, but I have this conversation regularly where people say "I've been meaning to do this for a long time!" The option to increase easily here might serve to reduce some of that issue...or at least hopefully it would!