Expanded CPP may not make much difference for young people: expert
Posted June 26, 2016 10:24 am.
Last Updated June 26, 2016 10:26 am.
This article is more than 5 years old.
VANCOUVER (NEWS 1130) – It’s something the younger generations have heard many times – Canada’s pension plan may be too underfunded to pay out by the time they hit retirement.
It will cover some expenses once you reach retirement age, it is not intended to pay for everything.
Founder of Generation Squeeze Paul Kershaw says retirement for today’s young people is not much more secure with an expanded CPP because the root causes of their inability to save persist.
“Namely it is things like housing that is so much more expensive. Childcare costs the equivalent of another mortgage. We have had most post-secondary degrees and as a result more debt. We earn thousands of dollars less for full time work than people did a generation ago.”
Kershaw hopes the government attention on this is a good sign the new federal regime will work harder to tackle other unaffordability issues.
The federal government and provinces agreed to expand the CPP to address the decline of the company pension.
