CPP changes boost retirement security

Tired excuses that are always put forward simply aren’t enough to deny seniors a chance at financial security

Canadian finance ministers worked out a deal this week that will enhance the financial security of Canadian seniors for generations to come.

Canadian Finance Minister Bill Morneau walked out of an all-day meeting in Vancouver Monday to announce an agreement in principle had been reached with a majority of his provincial counterparts to overhaul the Canada Pension Plan. It was a unexpectedly quick resolution to a problem that has long been a concern of Canadians nearing retirement.

Under the agreement, the average Canadian working earning about $55,000 a year will initially pay an additional $7 a month in CPP premiums, increasing to $34 a month by 2023. Employers would see their premiums increase by a similar amount.

The increases are not insignificant, but they are modest in comparison to the benefits that will be seen by seniors. The maximum annual benefits will be increased by nearly a third, going from $13,110 today to $17,478 when the plan is fully implemented.

“We have come to a conclusion that we are going to improve the retirement security of Canadians, we’re going to improve the Canada Pension Plan that will make a real difference in future Canadians’ situations,” Morneau said in announcing the deal that will bring the most significant changes to the CPP since its creation in 1966.

Of course, not all reaction was so positive. Some business groups warned the increased premiums for employers could result in job losses. But these are the same fears expressed after any suggested improvements to the lives of Canadian workers, and seem to suggest that staffing levels are not related to how much work needs to be done. This ignores the current economic realities that see corporations enjoying record profits while still eliminating jobs.

But the increased benefits could just as easily help stimulate the economy through encouraging more spending by retiring Baby Boomers. The same tired excuses that are always put forward simply aren’t enough to deny seniors a chance at financial security.


Just Posted

Belgian man searches for family of fallen First World War soldier from Victoria

Mark Edward Berton attended Victoria High School and has his grave in Flanders Field

Oak Bay artist co-op highlights autobiographical Snapshots showcase

Snapshots runs from June 4 to 22 at Gage Gallery, 2031 Oak Bay Ave.

Federal government actions hurt Sooke hatchery fundraising efforts

Funding denial comes on the heels of fishing closures

SD62 student places third in province-wide French competition

12-year-old Sasha Zandieh won third with a speech on poet Pablo Neruda

Island athlete goes from hoop dreams to icy track

Cyrus Gray hopes to punch his ticket to Olympics in bobsleigh

Police release photos of suspect in daytime sex assault at Vancouver woman’s home

A young woman, in hers 20s, was followed home by the man, before he violently attacked her inside

Raptors beat Bucks 100-94 to advance to franchise’s first-ever NBA Finals

Leonard has 27 points, 17 boards to lead Toronto past Milwaukee

Third person charged in death of B.C. teen Bhavkiran Dhesi

Inderdeep Kaur Deo facing charge of accessory after the fact to murder

Kamloops girl, 9, recovering from carbon monoxide poisoning now out of ICU

Her mother who was sleeping in the same tent with her did not survive

‘I think he’s still alive’: B.C. mom pleads for help finding son last seen a month ago

Family offering $5,000 reward for information leading to the safe return of Tim Delahaye

New poll suggests one-third don’t want politicians to wear religious symbols

Local politicians shouldn’t be allowed to wear hijabs, crucifixes or turbans on the job, survey suggests

Raptors fans far from home adjust plans to watch pivotal playoff game

Raptors currently lead the playoff series 3-2, and a win Saturday would vault them into NBA finals

PHOTOS: First responders in Fernie rescue baby owl who fell from nest

The baby owl’s inability to fly back to its nest prompted a rescue by first responders

Five takeaways from the Court of Appeal ruling on B.C.’s pipeline law

It’s unclear how many tools are left in B.C.’s toolbox to fight the project

Most Read