CPP Payout is not enough
Here what if find out in cpp fund. I am not sure about the investment stratigy of the fund but i could see that the contributions and the payout are not balanced which i think it may cause the system to collaps.
1- as our population are aging and living longer, I find out that the average age of life expectancy in canada is going up to be in the early eighties to early nineties from mid seventies, with more focus on health care, our population is living longer life and they are definitly taking more $$$ out of the CPP fund.
2- Our younger Generation whome are not contributing to the fund because of lack of employments, lower wage earnings or simply they turn to be self employed, or new immigrants, or emmigrated to usa, europe and asia seeking overseas employment. In the last 30 years canada's population did not grow at all despite the increase in the numbers of immigrants and births, while pensioners population grown dramatically.
3- This situation of aging population and longer life expectancies and the emmigration of yonge canadians who chose to work oversease, caused big gap between the contributions and the payout that caused deficit in the fund year after year.
4- The benefits paid out to our seniours are not enough to cover the continuously increasing cost of living. At maximum of approx $ 1300
per month it may not cover any basic costs such as rents or food or closthing or even personal care and it does not even keep up with the rising costs of goods and services due to incrase in the inflation rate year after year.
5- Its clear that the fund need to be re-designed now to reflect the facts i mentioned, as suggested baby boomers who will be retiring soon
may increase the number of pensioner dramatically and cause the system to a larger deficits if these problems not addressed right now.
6- I find out that the government deliberitly ignoring the issue of cpp, instead of dealing with the problem, its encouraging canadians to build their own private pensions such as RRSP or RRIF etc or its pushing lot of private and government Retirement funds to take place, but these funds serve those who worked in the government or large corporations who maintain such funds, but those who can't get such retiement packages will definitly suffer as a result of this policy.
Pro419