New Canada CPP a Joke

[benstt]

As others have said, CPP is a legal ponzi scheme that will eventually collapse. Increasing CPP contributions makes it so the ponzi scheme will survive a little bit longer.

Why do you think CPP is a ponzi scheme? It is well funded, and considered sustainable.

http://www.osfi-bsif.gc.ca/eng/oca-bac/ar-ra/cpp-rpc/pages/cpp26.aspx

Under the 9.9% legislated contribution rate, the assets are projected to grow rapidly over the next decade as contribution revenue is expected to exceed expenditures over that period. Assets will continue to grow thereafter until the end of the projection period, but at a slower pace, with the ratio of assets to the following year’s expenditures expected to reach a level of 6.0 by 2050. Thus, despite the projected substantial increase in benefits paid as a result of an aging population, the Plan is expected to be able to meet its obligations throughout the projection period and to remain financially sustainable over the long term.

 

[nottyboi]

http://www.cbc.ca/news/business/taxes/is-old-age-security-truly-unsustainable-1.1145910

The key ratio is worker to retiree and that ratio is shrinking. The private sector recognized this years ago. The public sector will need to recognize this reality as well. Public sector workers are now the nobility and the private sector are the serfs.

All they have to do is roll back the clawback threshold. If you think about it OAS was created as an instrument of anti-poverty among seniors, so why does the clawback only start at over 68K, that is downright stupid.

 

[SkyRider]

so why does the clawback only start at over 68K, that is downright stupid.

I think the clawback should be based on regions. Toronto is an expensive city so the clawback should start at $200,000. Income taxes should also be based on region.

 

[wigglee]

Harper said save your money, but most people can't get it together and company pensions are becoming a thing of the past, so the enhancement is a good thing. If you are one of the clever, hardworking types who saved lots, don't be so mean and stingy towards the rest. No one over 65 deserves to starve.

 

[fuji]

CPP is a ponzi scheme. Just like our monetary system. As well as the pension system and insurance and bonds etc..... People will one day wake up and realize this but by then they'll be completely impoverished. Why we can create a bond and have to pay usury on top of it's issuance but can't create our own currency interest free is beyond me.

You average Canadian is an economic and monetary retard.

That's not true, CPP is actuarially sound. In the US, Social Security is nearer to being a Ponzi scheme. Social Security "invested" all its money in loans to the US government, which spent the money in general budget.

That said, Social Security is much more generous than CPP, even after this reform. I guess that's just the socialist nature of the USA.

 

[Mr. Piggy]

Don't you realize the govt paying is the same as you paying? OAS is 100% govt funded i.e by our money. So please to some research before you start yapping.

Ya it is 100% Gov't funded. OAS is $570.52 per month and is taxable. Then there is the CPP and it has a maximum payable. If that's all you have and your income is low enough then you get the GIS which I think is $500 and change per month. Bottom line is less than $2000 per month before taxes. Our useless ass Gov't can give away billions of our dollars but make it so retired seniors barely have enough to live on. If you don't have savings, RRSP's or a company pension when you retire, your fucked.

 

[rhuarc29]

Seniors have had their time on this earth to earn their retirement. Now is for the young.

The young would be subsidizing the seniors, because seniors have not paid enough into CPP for the amount they'll be drawing.

Why do you think CPP is a ponzi scheme? It is well funded, and considered sustainable.

Because it relies on substantially more people paying into it than drawing from it. And with humans living longer, and having less children, that's unsustainable.

 

[Frankfooter]

Ya it is 100% Gov't funded. OAS is $570.52 per month and is taxable. Then there is the CPP and it has a maximum payable. If that's all you have and your income is low enough then you get the GIS which I think is $500 and change per month. Bottom line is less than $2000 per month before taxes. Our useless ass Gov't can give away billions of our dollars but make it so retired seniors barely have enough to live on. If you don't have savings, RRSP's or a company pension when you retire, your fucked.

True, but now you are slightly less fucked.

 

[SkyRider]

Because it relies on substantially more people paying into it than drawing from it. And with humans living longer, and having less children, that's unsustainable.

I heard that some teachers spend more years collecting their rich pensions than spent in active service (when they are not striking).

Guys, remember the fable of the rabbit and the squirrel. During the Summer the rabbit spent all his time fcuking while the squirrel was busy collecting his nuts. When Winter came, the rabbit was starving. Then Mr. Trudeau stepped and said to the squirrel: "It is not fair that you have all these nuts while the rabbit is starving so we'll take all your nuts away and give them to Mr. Rabbit."

 

[benstt]

Because it relies on substantially more people paying into it than drawing from it. And with humans living longer, and having less children, that's unsustainable.

Get with the 90's, cause that's when they made changes to the CPP that make what you're saying not true. That is why the CPPIB was created, to manage the reserve fund as they switched CPP from pay as you go to a funded reserve model.

You may have a point about other programs, but not CPP.

 

[jimmylikes]

Hydro and teachers pensions are insanely high.....its ridiculous what taxpayers are getting fucked over for these days....thank all the Liberal and Crooked Wynne voters!

I heard that some teachers spend more years collecting their rich pensions than spent in active service (when they are not striking).

Guys, remember the fable of the rabbit and the squirrel. During the Summer the rabbit spent all his time fcuking while the squirrel was busy collecting his nuts. When Winter came, the rabbit was starving. Then Mr. Trudeau stepped and said to the squirrel: "It is not fair that you have all these nuts while the rabbit is starving so we'll take all your nuts away and give them to Mr. Rabbit."

 

[rhuarc29]

Get with the 90's, cause that's when they made changes to the CPP that make what you're saying not true. That is why the CPPIB was created, to manage the reserve fund as they switched CPP from pay as you go to a funded reserve model.

You may have a point about other programs, but not CPP.

That may be true, but it also wouldn't surprise me if the CPPIB is shitting their collective pants about the future.

 

[basketcase]

Hydro and teachers pensions are insanely high........

You'd have a great pension too if you were forced to put 12% of your salary into a very well run investment plan. I'd love it if I could have my investments managed by OMERS or OTPP. Besides the mandatory contributions, the biggest benefit is the investment power of a large fund.

 

[Musketeer]

Ya it is 100% Gov't funded. OAS is $570.52 per month and is taxable. Then there is the CPP and it has a maximum payable. If that's all you have and your income is low enough then you get the GIS which I think is $500 and change per month. Bottom line is less than $2000 per month before taxes. Our useless ass Gov't can give away billions of our dollars but make it so retired seniors barely have enough to live on. If you don't have savings, RRSP's or a company pension when you retire, your fucked.

I couldn't agree with you more. Truer words were never spoken. It's sad but it's the truth. There is a lot of poverty in this country that barely gets a notice while our governments waste our taxpayers dollars on other causes at home and abroad that they deem more important.

Interesting to hear Conservative MP's like Lisa Raitt argue against CPP enhancement for the average Canadian while she earns a fat paycheque and will benefit from a gold plated pension plan, all at public expense.

 

[kid_kuh]

Why you all being so pessimistic. Save for your own retirement. And with whatever you get from the government you will do just fine. People expect too much of the Government. You understand how the system works, so plan ahead. Less complaining more TFSA contribution.

 

[Anynym]

I think statistically this is not correct......

Depends on what statistics you're looking at. Those who put aside money for retirement statistically do better.

 

[huckfinn]

Depends on what statistics you're looking at. Those who put aside money for retirement statistically do better.

Sorry....let me clarify.

I think most people don't put money aside, and depend on CPP and things like that. That is what I really meant.

You are right, when people put their own money aside they should do much better on average.

 

[nottyboi]

I think the clawback should be based on regions. Toronto is an expensive city so the clawback should start at $200,000. Income taxes should also be based on region.

OAS is to prevent POVERTY for the old, there is NO WAY you are impoverished as a senior at even 25K/year in Toronto. I think the clawback should start at 35K to be honest, if you are in Toronto and are retired and cannot afford it, then sorry, you have to move. Of course if you have to pay rent then add a regional tax credit.

 

[Anynym]

The new plans for CPP are designed to take more money from the poor, but not provide them with a return on their investment. It takes even more money from the rich, while providing them no benefit whatsoever. It is little more than a cash grab for today's tax-them-til-they-bleed (then pay out to our friends) Liberals at the federal and provincial levels of government.

 

[fuji]

The new plans for CPP are designed to take more money from the poor, but not provide them with a return on their investment. It takes even more money from the rich, while providing them no benefit whatsoever. It is little more than a cash grab for today's tax-them-til-they-bleed (then pay out to our friends) Liberals at the federal and provincial levels of government.

Untrue.

Unlike in the US where Social Security tax goes into general revenue, in CPP your contribution goes into an investment fund that is dedicated to CPP and is not spent by the government.