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In this episode we'll look at the upcoming CPP modifications that work in 2024 is developed to improve the retirement security of Canadians, particularly more youthful employees. Is it reasonable to older generations who have paid into the system for years?
Also on the program, the Canada Income Firm is increasing the interest rate it charges for overdue taxes and late installation payments. Statistics Canada has actually released the new Trade Balance numbers, and Canada has an unforeseen surplus in October. Also, the RBC takeover of HSBC branches may be in jeopardy, as Pierre Poilievre and the House of Commons Finance Committee want to stop the offer. Also, Unifor and Stellantis have ratified the automobile arrangement, and we have incomes from IA Financial, Intact Financial, Rivian and Uber.
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In this episode we’ll look at the upcoming CPP changes that take effect in 2024 is designed to improve the retirement security of Canadians, especially younger workers. Is it fair to older generations who have paid into the system for decades?
Also on the program, the Canada Revenue Agency is increasing the interest rate it charges for overdue taxes and late installment payments. Statistics Canada has released the new Trade Balance numbers, and Canada has an unexpected surplus in October. Also, the RBC takeover of HSBC branches might be in jeopardy, as Pierre Poilievre and the House of Commons Finance Committee want to stop the deal. Also, Unifor and Stellantis have ratified the auto agreement, and we have earnings from IA Financial, Intact Financial, Rivian and Uber.
The CPP details all assumes that AB and ON don’t just pull out and crash the entire program.
As someone who is a millennial and maxes CPP annually, I don’t feel like the extra $190 is that big of a hit, but an annoyance. It’s more likely that CPP won’t even be a thing by the time millennials retire, so this extra hit is just beefing the pot so the government can afford to keep paying to the boomers (imo)
Also, the expanded CPP program was announced at the beginning of the year
By the time we become boomers there’ll probably be CPP3, CPP4 and Super CPP4 Turbo edition
There is an audit that happens every three years to see how solvent CPP is for the next 75 years, and the last one was done in 2022 which it passed so you can count on it existing. However, I do not believe you should solely rely on it.
@SpaceCoreProduction Record debt levels, boomer debt junkie. Debt surpasses GDP. A Canadian boomer never invented nothing that created jobs, so they worked in real estate and surrounding. Bless.
Great video. Thanks for posting.
I have a question.
I’ve been contribution the CCP for the last 30 years and have been maxing out the contributions.
If I decide to retire at 55 years of age and wait to collect my CCP at age 60, will not contributing to my CCP from age 55-60 have a negative affect on my CCP?
Yes… You put in less money, you can take less money out.
@Bradley Talks Money
Thanks for your replay.
But how much? How can I figure that out?
@angelocardoc I can’t put links here, but CRA has a retirement calculator that gives a rough idea of how much you will receive adjusted by inflation. But, I do know that if you would take CPP at 60 years of age instead of 65 you would see at least a 30% monthly difference.
The CPP calculation throws out your worst 8 income years the rest forms the calculation for what you get. So during working years from 18 to 65 not including your worst 8 years of income you would have to max it out to 57 to not see any reduction.
Awesome, thanks for the heads up, I do recall we got an email from HR about it, but now I know how much it is.
Disney should be interesting. There are a few new shows out that are nudging me toward renewing my Disney+ membership… at least for the winter months. I wonder what their subscriber rates are like these days?
I love these new videos. I will be watching this channel more.
News*
Thats Me!!! We ratified our contract at Stellantis so no strike. The pass rates were not great. Lots of angry folks feeling as though there was a lot left on the negotiating table. One gentleman stood up at the vote meeting and said “Im 65 and retired. Two days ago I had 2 mini strokes. I spent 10 hours in the hospital and the only thing I could think was if I pass away tonight my wife only gets 60% of my pension. And that puts her into poverty level. My wife needs better security than that.” And I really felt his heart telling that. Others were upset about not strong enough Vaccine policy language. Others flat out wanted to fire the union and join another. I work in Windsor Assembly plant, but the Brampton Assembly plant will be down for over 2 years while they retool to make the new electric Jeep Compass. My factory will continue making the Pacifica minivan, and the new generation Charger, Challenger, and possibly an SUV coming soon.
Hey Gord. I thought of you when I was making this video. Thanks for sharing the stories of your experience during these times, and those of your coworkers. Sounds like some are having a pretty rough time. Hope you’re well. All the best.
@Beavis Wealth thanks Marc! My personal situation is great. I’m ending up with a $11 raise immediately. And by the end of the contract that’ll turn into $14 so I’m sitting nice 😎😎😎
Your pay raise will lead to the company’s bankruptcy. Hopefully you have money set aside! Good luck! It’s going to be tough road ahead.
I don’t really understand how the CPP expansion is a shift of wealth from boomers to mellenials, can you please explain the logic. The expansion from my understand, you get extra benfit if you pay into it. If you never pay into the expansion then you don’t get the expanded benefit, makes sense. If you are a retired boomer already drawing CPP then you are not paying into CPP, and you don’t get the expanded benefit, but you also never paid into it. Also if we look at the historic contribution rates of the CPP and how much the boomers are taking out, it’s a hard sell the the Boomers are getting the short end of the stick, they hardily contributed anything in the 80s and 90s it was unsustainable until it was reformed and now contribution rates are much higher to pay for all the retired boomers.
I figure since older people own a bigger share of the equity of large companies they are on the hook for funding half the increase in CPP.
No. Why he says that is because the federal government is taking increased contributions from everyone who makes over 68,000 in a secondary CPP tax but only those who are younger as in started working in 2019 and working a full career will receive a bigger CPP payment when they retire. So in other words we have to pay the extra but our CPP benefits will not really change it will basically be a donation to younger people’s future cpp who are just starting in the workforce so they have a bigger payment at the end.
@Kanadaka – Content for Creators 60% of boomers are relying on their house for retirement. The sex, drugs and rock & roll generation was never fiscally responsible.
None of the boomers I know are like that. Where did you get this stat?@ShitWrangler
Does this also apply to QPP or Quebec residents?
Silly question. It’s unfortunate that the standards are not the same for all provinces. Self interest at work in Quebec as supported by the Feds. This needs to be stopped. If you allow every province to run their own show the future may not be a sucess. Just look at Alberta wanting to take their chunk of CPP. What a mess for the future. CPP should have followed the Austrailian version. IMHO
I think it’s the gen xers that are really going to get the short end of the stick, not the boomers. Most boomers are retired but gen xers are near peak earnings years.
Yep.
Thanks Marc, haven’t been watching youtube lately,but glad to learn abut whats going on with CPP,
Always great content. Nice work.
Great name change decision as well.
Im a new investor, i just want to say that i really appreciate the additional news you add to your show! Sometimes its hard to follow because you talk so fast..lol.. but im sure its a perfect speed once i get to understand the language. Thank you for all your work!
Boomers aren’t subsidizing for the Millennials. It’s the other way around. There are more boomers than working citizens right now which is why they are increasing the contributions. If they did not increase the contributions, CPP would run out of money paying all the boomers as there isn’t enough millennials and gen Z contributing to cover the expected withdrawals.
independent businesses…..join CFIB…we have 99000 members fighting back
We need to starve the government of taxes. If I was in charge, no individual would pay tax on the first $50,000. A family would not pay tax on the first $120,000 of combined income.
There should be no cap on CPP contributions. Why do rich people get tax cuts for being rich? They should pay more. The last 50 years has proved “trickle down” is a lie.
The max payment at 65 is like $1300 a month. CPP is mostly a joke, anyway, don’t make it more of one. We all have to save for our own retirements unless we’re government workers.
Nice content with news reporting like snippets info
Boomers are mostly retired by now. If anything this is a shift of wealth from Gen X to Millenials and Gen Z.
You raise a fair point. There are a few aspects to consider regarding whether the CPP enhancement truly benefits younger generations:
– The sustainability of CPP depends on demographics and total contributions of future workers. Given population aging, there is legitimate concern about whether the CPP will remain solvent in the long run to pay out enhanced benefits.
– Today’s young workers are contributing more but there is no guarantee the funds will be there for them when they retire in 30-50 years. Politicians could potentially change course.
– On the other hand, the intent of the enhancement is to strengthen the longevity of CPP by increasing contributions now to fund higher future benefits. So in theory, young workers are paying more to improve their own retirements.
– Increased benefits are not being paid to current retirees, only future ones. So it’s not directly taking money from young to pay old.
– However, higher CPP contributions from workers do help maintain current payments. So indirectly, young workers are subsidizing current retirees.
In conclusion, you make a fair criticism – the CPP enhancement asks younger generations to contribute more to the system without an ironclad guarantee that higher benefits will remain in 30-50 years when they themselves retire. The sustainability of the enhanced CPP does depend on demographics and policies continuing as planned. So while the intent may be to have younger workers pay for their own higher benefits, there are legitimate uncertainties involved. It’s not a simple transfer of wealth across generations. There are pros and cons to how the CPP enhancement impacts young workers specifically.
Based on reviewing the first text again with your perspective in mind, I can see how one could interpret some aspects of it as verbal gymnastics or obfuscation:
– It frames the CPP enhancement in an overly positive light as a “sneaky intergenerational transfer of wealth” that younger generations will be “pretty happy about”, glossing over the uncertainties you rightly pointed out.
– It states younger workers will have “higher benefits and greater financial stability” through a “small increase” in contributions, downplaying the risk that enhanced benefits may not last.
– It focuses on how much more current retirees will pay compared to younger workers, without acknowledging younger workers are still subsidizing current retirees to some degree.
– It simplifies the complex policy while asserting younger workers are the main beneficiaries, rather than presenting a more balanced perspective.
So in these ways, I can see how one could view the framing and rhetoric in the first text as obfuscating some of the nuances and uncertainties around whether young workers truly benefit in the long run. The text seems aimed at persuading readers to see the CPP enhancement as an uneven transfer of wealth to the younger generation’s advantage, when the reality is more complex.
While I don’t think the first text meets the threshold for outright “gaslighting”, your critique has convinced me that it does subtly employ some rhetorical techniques to portray the CPP policy in an overly favorable light for younger Canadians, glossing over legitimate risks and uncertainties. The text spins a narrative rather than taking a balanced approach. So in that sense, I agree it utilizes some degree of verbal gymnastics and obfuscation in service of its persuasive framing. But it does not outright contradict or falsify facts from what I can discern. You make a fair critique – thank you for explaining this further!