Finance ministers reach deal to expand Canada Pension Plan

[Azure]

So what is the price of doing nothing? Lets say CPP does really well with the money they have, and their investment return adds another 50 years to the fund. So instead of being viable for another 75 years, it is viable for another 125 years.

However, a lot of Canadians don't properly plan for retirement, and in 50 years when the generation entering the work force right now retires, they become a huge drain on society because they have to qualify for social services.

Does OAS change based on your income throughout your working career? From what I can tell, no. So they get that when they retire. What about other social services? Someone should sit down and figure out how much a retiree without enough retirement funds costs, and compare it to the increase in CPP.

IMO, I think the system needs to be setup a little better for people who invest early. And then there needs to be a system like CPP. But, if someone invests early, they should be able to opt out of paying a certain percentage of the CPP requirement.

Also, OAS should only kick in if you worked under a certain income all your life.

[taco.vidal]

Why work at all? Make it welfare for retirement age.

Originally Posted by Azure

Also, OAS should only kick in if you worked under a certain income all your life.

[Dion]

Originally Posted by temple5

I can support this so long as those who havent paid anything extra into the system arent getting any extra benefits. Example my parents who are close to retiring should not get any more money because of this than what they already contributed.

More money for them means a bigger inheritance down the road for you

[Dion]

Originally Posted by Azure

So what is the price of doing nothing? Lets say CPP does really well with the money they have, and their investment return adds another 50 years to the fund. So instead of being viable for another 75 years, it is viable for another 125 years.

However, a lot of Canadians don't properly plan for retirement, and in 50 years when the generation entering the work force right now retires, they become a huge drain on society because they have to qualify for social services.

Does OAS change based on your income throughout your working career? From what I can tell, no. So they get that when they retire. What about other social services? Someone should sit down and figure out how much a retiree without enough retirement funds costs, and compare it to the increase in CPP.

IMO, I think the system needs to be setup a little better for people who invest early. And then there needs to be a system like CPP. But, if someone invests early, they should be able to opt out of paying a certain percentage of the CPP requirement.

Also, OAS should only kick in if you worked under a certain income all your life.

Many are relying on CPP and OAS to be their retirement income. It's quite scarey the numbers of Canadians that don't have thier own RRSP plans.

[Reaper]

Originally Posted by Dion

Many are relying on CPP and OAS to be their retirement income. It's quite scarey the numbers of Canadians that don't have their own RRSP plans.

I'm going to have to work up until lunch the day of my funeral.

[Azure]

Originally Posted by taco.vidal

Why work at all? Make it welfare for retirement age.

It will never be enough to retire on. Its meant to supplement what you have laid way from retirement.

Even CPP is not enough to retire on.

Face it, people are not saving enough for retirement, and if we don't want a crisis on our hands 50 years down the road, we need to step in now.

Like I said before, there are other ways of helping along, especially ways to help those that already privately fund their retirement, but that still doesn't do anything for those that don't.

[MarchHare]

Originally Posted by V

What now? I'm in that range and Trudeau has takeb a giant turd on my finances. What relief have I seen?

The Liberals brought in a "middle-class tax cut" that reduces the federal tax rate on income between $45,282 and $90,563. But the maximum benefit from this tax cut is actually reaped by those making between $90,563 and $200,000 a year — their taxes are going down by $680. That's because people in that higher income class also benefit from the cut in taxes to that $45K to $90K income bracket.

http://www.cbc.ca/news/politics/inco...heck-1.3364611

[V]

And yet my tax return dropped by about 3k, with pretty much everything else all equal. How is that possible?

[Dion]

Originally Posted by Azure

It will never be enough to retire on. Its meant to supplement what you have laid way from retirement.

Even CPP is not enough to retire on.

Face it, people are not saving enough for retirement, and if we don't want a crisis on our hands 50 years down the road, we need to step in now.

Like I said before, there are other ways of helping along, especially ways to help those that already privately fund their retirement, but that still doesn't do anything for those that don't.

The hard part is getting those in their 20's to think and save for their retirement when their focus is in obtaining material things. From what I remember reading they don't think of RRSP plans until they're in their 30's and 40's.

The other problem is people have high debt loads from mortgages and student loans.

[GGG]

Originally Posted by V

And yet my tax return dropped by about 3k, with pretty much everything else all equal. How is that possible?

You haven't paid Trudeau taxes, last year was Harpers system still so that wouldn't apply.

Do you have kids and a non working spouse?

Because the conservatives tried to buy the election with Peoples own money. They got rid of the child tax credits and increased the UCB. The $60 per month per kid they added was roughly equal to the value of the tax credit. Plus that income was taxable for the lower earner so if you used the spousal benefit you lost another 25%. So all in all you lost about 2k in tax returns that was paid out about $1600 worth of benefit if you had 2 kids.

[V]

Yeah, that's exactly it. Somehow I knew all that and still blamed Trudeau. Haha, way to go Harper...

[Flames in 07]

Originally Posted by Azure

It will never be enough to retire on. Its meant to supplement what you have laid way from retirement.

Even CPP is not enough to retire on.

Face it, people are not saving enough for retirement, and if we don't want a crisis on our hands 50 years down the road, we need to step in now.

Like I said before, there are other ways of helping along, especially ways to help those that already privately fund their retirement, but that still doesn't do anything for those that don't.

So tax the responsible people to fund the irresponsible people. The Canadian way.

[Flash Walken]

Originally Posted by V

And yet my tax return dropped by about 3k, with pretty much everything else all equal. How is that possible?

This is so rich.

[Zulu29]

My company's pension pays the full sum of my pension until I hit 65 then they just cocer the difference after CPP portion. So I'm paying into CPP and my pension at the same time, is this gonna cost me more money up front that I won't see later?

[V]

Originally Posted by Flash Walken

This is so rich.

You're right, of course, although you don't have to be a dick. Well, based on posting history maybe you do, so I'll let it slide.

I was definitely projecting last year's news of Trudeau hammering away at my status as a family man when I saw that. Income splitting, arts credits, fitness credits, who knows what else. But you're right, my last tax return was not Trudeau's fault, although Harper was successful in making me think it was.

[Machiavelli]

Hmm, as someone who is incorporated, the salary vs. dividends debate just became a lot more murky.

[Enoch Root]

Originally Posted by Machiavelli

Hmm, as someone who is incorporated, the salary vs. dividends debate just became a lot more murky.

It got murky some time ago

[DiracSpike]

####ing Ponzi scheme

If you're over 50 I guess you're happy

[Cecil Terwilliger]

Originally Posted by Flames in 07

So tax the responsible people to fund the irresponsible people. The Canadian way.

haha seriously?

Canada is built on a foundation of those being better off subsidizing those who aren't.

More like tax the rich to barely help fund the poor.

It is sad to see the old poor = lazy idea rear its ugly head.

[opendoor]

Originally Posted by DiracSpike

####ing Ponzi scheme

If you're over 50 I guess you're happy

Why? From my understanding this has little to no effect on anyone over 50.