Make sure you watch this video on my YEAR-END TAX SAVING TIPS 👇 ruclips.net/video/xLXup5L-S2Q/видео.html The strategies in that video are very important EVERY YEAR in December, not just in 2024, to start your financial New Year off on the right foot 🇨🇦
I like to say that you have a great way to clearly explain Canadian finances. I can’t find anyone explaining Canadian taxes better than you. Keep up the great work.
I know taxes and CPP aren't the most exciting topics but they do affect EVERYONE so it's so important to understand how they work and plan for it! I'm glad that my videos have helped make that info digestible 😊
Hi Canadian in a t shirt, can you let us know what changes if any are happening to pensions for seniors already retired. Any hope for the better for us? Thanks.
Thanks for explaining the new changes to CPP. You mentioned that playing more into CPP means that you get more out of it but if the reason we need to pay more into it is to make up for inflation, then that doesn't actually mean we get more. It just means that the value of our money is decreasing, so more money needs to be put in just to keep the value of CPP the same as before inflation came along.
@@allglorytojesus2023 The hard truth is that we do not even know if the earth will be habitable in the coming years; consequently, I do NOT believe that anyone, including you, can predict with any reasonable degree of certainty what the state of inflation will be by the time you collect the pension that you may be entitled to . If, god forbid, Poilievre ever becomes Prime Minister, we will be in scary shape in terms of the environment so it will not really matter. I'm pretty sure that Canada's physical size will increase after we become part of the USA because of Poilievre's plan to americanize us Gus.
Thank you, Adrian, for another textbook explanation of changes coming down the pipe. Really appreciate your guidance, explanations, and incredible ability to get the info across in a clear manner.
My pleasure buddy! I know that taxes and CPP aren't the most exciting topics but it really does affect EVERYONE so it's important to understand the changes and plan ahead for it! 😊
I always forget about the CPP because I don't really want to rely on it when I retire. I plan on retiring early anyways using all the investments I've done since following you. Thanks for all the videos and your very useful guidance!
That's what I LOVE to hear! Yes you NEVER want to rely on CPP. It's up to your to make your own retirement plan through the RRSP, TFSA etc. But the CPP is and always will be your money so you will have it as a bonus, when the time comes =)
I do rely on it. As a retired senior with disabilities that issue disappears from all consideration by federal govt. So That wee bit extra help cover supplements and Naturopath treatments of $399 every two months. You don't get much but with a limited income that is NOT a biweekly income; it's limited to around $2000 so good luck eating well, covering rent and heating/AC costs. Dam glad I refused and spurned the Pharmaceutical/government plandemic scam for trillionaires as my health is still improving with no dam mNRA or the shit issues like falling Dead.
@@texaspotency9147oh don't do it that way. no no no. BAD your beneficiary will get creamed by taxes you want the home to have beneficiaries listed as owners. or a family trust is listed as an owner. This way when you pass. Your beneficiaries are already on title. or have use of the property via the trust. Other wise they are getting capital gains taxed on the full market value of the home.
@@mtnphot Semi incorrect, CPP Death Benefit is half to your spose or next of kin, The survivor’s pension is a monthly benefit paid to the surviving spouse or common-law partner of a deceased contributor.
THIS REALLY SUCKS. I pad all my life into CPP involuntarily. I also paid involuntarily into my work pension. Now that I am retired I get taxed again on that. So you can't tell me I get my money back. All I am doing is paying ever higher taxes.
Both CPP and your work pension are before-tax deductions, so no you don't get taxed "again", because you never got taxed during the contribution. It will suck less if you learn a bit more about your own paycheck and your own retirement planning.
They are taxable when you retire. If you have made provisions for a comfortable retirement by yourself, you will lose most of the income from the CPP in taxation. If you die young you lose everything you were forced to contribute so it does not go to your estate. Survivor income for your spouse is half what you were getting and only if they have not already exceeded the maximum. They get a portion only up to the maximum. If you divorce the feds take 35% of the splitting of the pension funds for themselves. And your employer is being forced to match the funds on top of a regular pension. It is an involuntary ponzi scheme where the only winner is government.@@Narcissist86
It's based on your gross monthly income. Example: you earned $4000 last month. Your CPP payments are a percentage of the $4000. At the same time you pay the provincial/federal tax of the Full $4000. Not [( $4000 - CPP contributions) x provincial/federal taxes. ] Then when it comes time to collect your CPP, which has been initially tax, your CPP monthly income is taxable. Why? It's a savings investment plan of your taxed contribution of your gross pay. It should not be considered income. It's savings.
@@Narcissist86 "before-tax deductions" technically that's true, but in practice you pay more times over in different ways. There are many reasons why CPP is a bad deal, for one, the "tax break" you are getting, is not really a break, they've been instead taxing your income more, after the contribution, to a higher rate to make up for it. They simply hide it from view, and expect you to be happy. Everyone will be FAR better off, building up their own retirement fund, and governments should give people the option to opt out, but instead they've made it involuntary. Sure, it perhaps works best for fiscally incompetent people, but it's been a bad deal for everyone else.
It should be mentioned that workers on the lower income scale will receive much less then the current maximum monthly CPP payout. So someone making roughly half of the yearly minimum salary to pay the maximum amount of yearly CPP deductions, will receive half of the maximum monthly payout.
But at a high level yes, the more you put in, the more you receive. There are other government funded programs to help retirees with lower incomes as well
Alberta paids the most into the CPP so they have every right to pull out of it. The Criminal Liberal Federal government is scared because they probably sent most of the funds
Don’t normally comment but wanted to let you know your videos are fantastic. You communicate the information in a way that’s very easy to understand. Great stuff👍🏼
Sad part is the government holds your investment for 40 years and when you draw on it it is a taxable income, so if you have rrsp or a job pension you will be taxed on ALL incomes
Well yes, that's because it's INCOME, and therefore subject to taxation. And it's part of the social network, without it many people would retire broke and then we would be stuck with an even larger bill supporting these folks.
@@toddstevens8506 Your INCOME is taxed again after you haved waited for over 40 years with a massive higher tax rate.But if you are ok with that then I guess you trust the government more than I do.
@@Wally-g6b I think your confusing your payroll deduction with a tax, a deduction is not a tax. You pay tax once, when you spend it, as income, in retirement.
Man, my CPP contributions are not MY money... if it was my money my family would be eligible for a full return of what I payed in if I passed away... thats not the case. If it was my money, I'd be gaining 8% per year on my contributions and not basically peanuts for what I payed in. It's a forced community fund that steals from Peter to pay Paul. 50% of your contributions go directly to a retiree and do not get invested. Average rate of return is 2.1%... way below market.
"It's a forced community fund that steals from Peter to pay Paul. 50% of your contributions go directly to a retiree and do not get invested." Except that the fund is sustainable and does not operate in the manner you described. The CPP fund is one of the best managed funds in the world. "Average rate of return is 2.1%... way below market." Except you cannot compare equity to fixed income that also acts as longevity insurance.
@@Narcissist86 2.1% (if that's what it really is on average) is an incredibly low return, it won't cover inflation, not unless the figure has been adjusted for inflation. Even for a fixed recurring income investment, it is low. If my fund manager got that kink of return, I'd fire them.
what happens if you die before you can even collect any pension, does your family get it? A legal foreign worker pays into cpp, doesnt benefit from it but still pays. Its 100% a tax
Thank you so much for those kind words! I know taxes and CPP aren't the most exciting topics out there but it's important to understand and plan ahead for it! I'm glad my videos have made these a little easier to digest! 😁
Thank you for the extensive video - You are screwed if you are self-employed and have to pay over $8,000 a year - robbery - would prefer to invest everything myself and would come out way ahead of this whole scam.
It definitely hurts paying double the CPP, especially when you're business is just getting started. That is certainly one of the things you MUST consider before quitting your job!
I go over several strategies to reduce this extra burden on you and your business in this video here, the DOWNSIDES of Running a Business in Canada =) ruclips.net/video/ST1_Zem8AcM/видео.html
1:28 The money you pay into the CPP is not your money and you don't always get it all back. My dad paid into the CPP his whole life. Started collecting it at 65, died at 69 and the estate received a $2500 death benefit. Pooled yes, but not all your money.
The increase is because the government has suddenly realized there isn't enough money to go around and they've probably lost most of it on the bond collapse, so they are taking more away from workers who can't afford it to pay for the older generation that's far larger and also can't afford it. By the time I'm needing it there wont be anything left. The money they are taking off for CPP is money I could be putting into my own retirement plan and then I wouldn't need CPP. CPP is a solution to a problem they created.
CPP’s most recent actuarial study confirmed that the plan, as currently implemented and accounting for the pending changes, will be robustly funded for 75 years - the maximum period they consider. Rest assured, your CPP benefit will be right there when you’re ready to take it.
@@James_48dude look at current economic situation. Whole world's as well as Canada. The unpredictability is ridiculous. Over past 10 years, scenario of jobs have changed. Lots of different benefits have introduced which are also being misused by lots of people. GenZ and milennials have literally no guarantee that they will ever get their cpp back or even live till that retirement age.
@@rachelmatthew6771 Dude - facts don't lie. CPP is funded, and no one is going to lose their benefits. CPP is fully separated and managed from government spending. This is not the first time we've had to navigate economic turmoil. All this conjecture about CPP not being there in the future is absolute nonsense - because it is just that - conjecture - none of it is founded in any data. You want to talk about unpredictability? I assure you CPP is perhaps the most predictable thing you will be able to count on in the future. Genx and millennials have nothing to worry about - so there is no point in stoking fear without any merit.
@@James_48 i dont know how old you are. But you seem to live in a delusion. We literally got to see how government hands in benefits. Especially during covid, covid benefits were handed out without any verification. Even non residents got the covid benefits and got misused. I dont know what you mean CPP is funded? CPP is a tax. Every person is forced to pay into it in the hopes they will get it after 65 or later. CPP worked well till now cuz there were more people paying into CPP versus pensioners whereas now situation is changing. Baby boomers are started to retire in high numbers which has created the imbalance hence the increase in CPP. Who said this is the first economic turmoil? But look where this is leading us. If you are a kid I would understand that one might not have experience to view the world in an experienced manner but any decently capable adult can. Why are you so delusional? You are saying its a conjecture and cant be founded in data. How in the hell can you find data for something that will happen in future? Also, you can make estimates based on current scenario and usage of CPP. Also CPP is taxed when one starts getting the payments after retirement. Yes you are totally correct that Gen X and early milennials dont have anything to worry that. I mean Gen-Z and later millennials wont reap the same benefits that current pensioners are reaping.
Great Scott, thanks Adrian! You could look at it like a tax, especially if you pass away before or in the first few years you start collecting it, as any amounts your spouse or children would receive would be peanuts. If you're single, it would just be gone. That's why I max out my TFSA and RRSP's as those are my own investments and will roll over to my spouse in full.
I don't love seeing the CPP coming out of each paycheque either but I whole heartedly support the idea of the CPP. We all work together to ensure that NO ONE gets left behind. Everyone will have at least something to count on when they retire. And that's worth it =)
I know how the CPP works. Being a Gen X-er I just don't think I'm going to get much out of this 2nd tier of CPP. Many people are having trouble making ends meet in these difficult times and INCREASING payroll deductions does not put food on people's tables nor does it pay for mortgage interest. Our former Ontario Premier tried to foist this increased CPP on us. The Harper government said no but then the Trudeau government ended up foisting it on the entire country. Cost of living increases aside, wouldn't you rather have $300 extra to invest in your own portfolio? An extra $300 your children inherit if you die? Ya that's right the CPP survivor benefit is like 2 grand if you die early. Alberta is also thinking of leaving CPP and have claimed HALF of its entire net worth. What then?
Please can we have more details on QPP and CPP, payroll deduction, the maximum amount per pay and when the enhance will be taken : during or after. I like the period of the year when I get the break from the QPP. The government calculation tools, did the get updated in their forecast too.
You bet Estelle! I will be making a whole SERIES of videos on the CPP, there is so much to cover! I just wanted to make this quick one on the upcoming changes =)
My favorite thing about these videos is not just having thing well explained, but having the information put before me in the first place. Honestly! Without Canadian in a T-Shirt I would simply be ignorant to most of these policies and policy changes. I know I could remedy this by finding more direct sources, but the idea of wading through government sources to gleam relevant knowledge is a bit intimidating to me.
That is beyond frustrating.... I am now self-employed but if I was working for someone else, I would expect them to raise my salary to at least match inflation...otherwise it doesn't seem like I would feel fairly valued...
Is there a REAL way to calculate inflation. A year ago, I heard it was 9%, that was before the half million dollar home, 3k for rentals and 3x the cost of food.
While it may not be exactly a tax, it isn't entirely yours either. If something material is truly yours, you can give it to someone, say a child, as part of a will if you die at a relatively young age (i.e. you might have contributed many years and died at say 59 years old before collecting CPP). So it kind of is a tax too, that disappears with no benefit to your friends and family.
No you won't get ONE giant cheque from the CPP when you retire, you receive monthly income! And that's the point! You receive that money until you die!
I am not entirely sure JT hasn’t spent all our CPP contributions, other. Wise he could give the Albertans their contributions to fund their pension plan
I am an Albertan, any despite what D Smith says, most Alberta's do NOT WANT their pensions at risk because D Smith wants her grubby hands on it to give to her buddies in the Oil sector. This would be a massive mistake. And thinking Alberta will get 50plus % of Canada's CPP is living in a dream world. She is a con artist.
Alberta here. I will be voting to leave the CPP when it's put to a referendum. The Trudeau government is trying their hardest to make Albertans believe the APP is a bad idea. It's working on the uninformed who only watch Trudeau's mainstream media. But for those of us paying attention, we know it's good for Alberta. Every province takes the money and runs whenever they have a chance. So I don't feel the least bit guilty for Alberta trying to offset Trudeau's carbon taxes. Besides, Albertans did not vote for Trudeau's carbon taxes. The rest of Canada did. No guilt here.
the cpp is a ponzi scheme. You are told it is well funded but people were also told everything is is fine take out more loans the day before the great recession. That is why Alberta cant be allowed to leave the union, they are the only thing holding it up. that is also the reason trudy is pushing hard to get migrants into the country. he needs suckers working not people reproducing and having more dependents.
Great commentary. I still can't afford it, along with all the additional taxes that the Government applies to me. The government does not help the homeless, or provide a real cost of living income to help the impoverished.
Just remember folks! The average payout pre month in 2022 was $717 so don't even consider this as your retirement!!! Become financially independent and motivated is the only way to even consider an easy retirement!
I couldn't agree more! The CPP is not enough to fund your retirement but it never was intended that way! It's up to YOU to secure your own financial future by investing in your RRSP, TFSA etc. The CPP should just be there to help but don't rely entirely on it
@@CanadianTShirt I wouldn't say it wasn't intended that way, when these programs were put in place the life expectancy was only a few years past 65, they were never to last 30+ years paying out and in typical government fashion they are late to update programs(or is that planned?), plus saying its up to us to fund our own retirement is also a privileged experience because so many people rely on guidance through life why isn't it the government teaching these actual important issues and lessons in our society, to me its because the normal school system(which is also outdated) is more about learning how to be a disciplined factory worker for the masses once out of school. And one final thing, the whole being financially independent and free of working for the other guy is also not sustainable for the capitalist system we live in, if everyone didn't spend money like now, economy crashes, if everyone didn't work for someone, economy crashes. It's sad but true that if you can get out of the rat race before most people catch on, that's the real prize, cause once things start catching up in the financial independence area, it'll become less appealing and that's what capitalism wants. In my opinion of course
I don't think so... if you maxed out your CPP in November, I can estimate your income (I won't do it publicly don't worry 😅) but you will likely max out your CPP contributions within another paycheque or two =)
I always maxed out my CPP in August and always saw extra on my pay between August and December. Looks like it will now be pushed back to September or October now. I wish there was a way of deciding on whether we even want to contribute to CPP or not. I am an experienced investor and have been for a long time.. I would much rather take the yearly CPP amount and put it into a low cost ETF. Who knows what will happen to the CPP fund by the time I am 65 anyways. I wouldn't be suprised if the government steals this money to pay off their debt
@@CanadianTShirt I also want you to know I used one of your older videos to encourage me to start a side hustle and set it up as a side proprietorship which has given me more control over my finances and allowed me to write off expenses for my business
@@freedomliberty83the CPP2 is only $188. That should be in one paycheque. The overall $400 increase is due to planned increases already. Which means you should have it maxed sometime in September. A low cost ETF will not beat the CPP
What about the people that are 75yrs. old or more that paid all their life? Is there an adjustement for the cost of living today. We are going down and being forced to sell our house.
IT'S OUR MONEY...BUT, THE GOVERNMENT TAXES OUR CPP EARNINGS when we start receiving it back!! It's CRAZY that we earners have to PAY TAXES ON OUR CPP AND OUR OAP that receive...No wonder elderly retiries HAVE TO FIND JOBS IN OUR 60'S on...And most are working at WALMART😢😮 NO SENSE AT ALL!
To those who say, that you are not being taxed on CPP contributions, it's simply not true. The "tax deduction" you think you are getting, is being made up for, with a higher tax rate on what's left over. If you own a business, and pay yourself via dividends, despite not paying into CPP, (and RRSP, TFSA, EI) the tax owed remains about the same, that's clear proof that you are not getting a tax break from these "deductions", it's just imaginary made up BS.
Adrian - this video was good, crisp and to the point. That said, I really wonder which Einstein came up with this formula of Tier 2 CPP/QPP deduction. As it is the taxes in this country is so high. Add to that 15% (approximate) GST/PST taxes. On top of it so many pay cheque deductions. The tier 2 deduction was not required. A day may come when the govt unable to support the pensioners will take away our entire salary.
I don’t see what’s the problem here? It’s still your money that you would get after retirement. If you’re already making enough to qualify for Tier 2, an extra $300 which you would get back in retirement anyway isn’t a big deal.
@Pantomime0709 I live in Quebec. As it is we in Quebec pay the highest income tax besides our qpp deductions are higher than cpp plus our EI and QPIP (not present in other provinces ) higher too. When you add all of these you will realize how much higher you pay. Just because we get back higher in retirement if we pay now (tier 2) doesn't justify especially inflation is still high and are paying more for other services
@@Pantomime0709 If you can control your money, then you'll be able to get a better return out of it. I guess this isn't a big deal if you prefer to have the government to determine your meager amount of your return when you do finally retire... But I don't trust the government with my money as I'll get a better return out of doing it myself and then there's also considering the lost opportunity cost of whatever that % is... Then you also have to consider inflation and the actual tax brackets when you retire. If you're paying low taxes now, you'll be shifted to a higher bracket when you retire as you draw from RRSP and CPP.
@@sandeeptanjore1253 "Just because we get back higher in retirement if we pay now (tier 2) doesn't justify especially inflation is still high and are paying more for other services" Good thing CPP is inflation-adjusted.
I try my best to keep my channel a welcoming and accessible community for EVERYONE! I just focus on the facts and the numbers, my political opinions I will keep to myself LOL
CPP is a tax, because it is not voluntary. CPP premiums have gone up from $2500 to $4000 under Trudeau. That means less money for TFSA. It also adds burden on employers who have to pass on these costs to end consumers.
Exactly. Less money for TFSA, and on top of that it's not part of your estate. You die before collecting CPP, your estate gets nothing of that money unlike TFSA.
No, it's not a tax ... until it kind of is. You can't opt out. Also, You pay in to it your entire life and they call it "your" money. Then you start withdrawing it. If you die within a few years of retiring ... suddenly it's not your money anymore. Your estate doesn't get it. Sure a survivor may be entitled to some in the form of a survivor's benefit, but otherwise the money you paid in all your life just stays in the pool ... which pays out to someone else. So, it's not really your money. It's the pool's money ... which is just like taxes.
And then they can induce new vaccines for new diseases that will ensure we perish away by the time we intend to use these benefits. Geeez what a bunch of incompetent bigots who dont want to focus on lowering taxes, inflation but just want to take our $$$
It's a tax. Even the Canada Revenue Agency says "It's a tax". The money is not "yours". You die before 65, no benefit to family except a partial to a spouse, if you had one. The $2,500 death benefit, is actually down by more than $1,000 from the mid 1990's. And, not every Canadian gets CPP, only those that contribute get it.
Great Video! When can we expect to get more credit card videos? Could you do a yearly refresher of the video you made showing all the cards you carry in your wallet? Thanks so much! :)
You got it! I am actually working on a NEW credit card video this week! I'm hoping to launch it on Sunday! It's a BIG game changer that I am super excited to share with you all! 😁
And yes! I will update my 7 Credit Cards I Use Daily video in early 2024! I refresh that video every 2 years so it is due for a new coat of paint! And some new info! 😁
So...my CPP payment usually stop in late October or so, maybe November...I'm assuming that is because I maxed out. So next year the CCP payment will continue to Dec 31, but at a different amount after late October. I thought my CPP was going to current CPP payouts and when I retire, well, someone else will be paying in to cover my payments... You are saying otherwise.
Yes, you are correct and the person in vdo is incorrect. You are paying for the current pensioners. This fund is also used as tax. The person in vdo provided incorrect facts
With this change, you'd probably stop CPP payments in early December, late November. Also note that the percentage drops from 5.95% to 4% so you'll be getting more take home.
The Gov't saves on paying out CPP if you die before you can collect all your contributions. They just keep it. Since the introduction of the MRNA, we're seeing a 20% increase in excess deaths, over and above the yearly average. That's HUGE savings! It's no wonder why the Gov't wanted to mandate it.
Couldn't agree more and I have seen first hand as a previous banker a customers CPP being reduced to half as they stated in a letter to her that she basically had enough savings of her own to live out the rest of her life (she was 75 at the time), and the funds can go to others that "really need it"..can't imagine how people actually believe that you can ever get anything TAX FREE or free period from the government, I would love to see a study of how much individuals paid into it and actually got back, I bet the numbers would shock everyone
This is a joke. Cpp gives us back pennies when we retire, if we invested this value for 35 years ( including what the employer pays as well) we'd easily get over a million and live off the passive income. What a scam.
Close but not quite. If we assume we invested the current CPP maximum each year for the past 35 years, and invested it all into SPY, your portfolio will be at about $700k. Given the typical withdrawal rate of 4%, this gives a monthly payout of $2354. While it is true that this is more than the current CPP maximum of $1306.57, you should keep in mind that the latter is fixed income, indexed to inflation, and acts as longevity insurance.
@Narcissist86 SPY ( or s&p 500 indexes) has had an average yearly return of about 10% for the past 35 years, if we include the employer's contribuition we'd be able to invest about 7500 maximum each year, which would actually be a lot more than 1 million. Also we would only get the maximum cpp of 1300 if we decide to take it at 70. If you dont live that long and don't take it, that money is pretty much lost. I also dont think i wanna wait till 70 to retire, doesnt seem like a great plan to me, so if i retire at 60 (over 35 years of full timework for me) i'd get around 600/month, which in these days would be enough to 2 visits to the grocery store only. Again, it's a complete ripoff
@@0dmightyone0 I've back tested against SPY's real performance in the last 35 years to give that $700k figure. And it's no guarantee that you'll receive the employer's contribution either in an alternate scenario so not sure that's an apples to apples comparison. And once again there's the additional point of longevity insurance, which you've conveniently ignored to support your notion that it's a scam.
I'm using 7500 max. contribution based on this year. I know it was less than that before. But i'm just calculating considering millennials and when we retire. Since max contributions grew 3k for the past 10 years, I can easily see it hitting 10k per year very soon.
I imagine the govt is doing this because they know that living costs are increasing, while salaries are not. Young workers do not have the means to save their own money for retirement, so the government has to forcibly increase contributions now to reduce the impact of the big problem looming ahead in the near future... at least that's my gut feeling.
You are partly right but actually a big reason for this increase IS because salaries are increasing (statistically speaking) Of course not every company and not every employer has been increasing salaries, at least not enough to match inflation and that is a frustrating situation....
But yes another big factor is the rising cost of living and thus the rising cost of future retirees! Especially as the life expectancy grows because remember, the CPP pays you every month until you die
Only issue is the CPP is based on the assumption population growth goes up. I believe someone said most social programs becomes a mandated pyramid scheme at negative growth. If you pay more into a system that is currently going into current retirees and there are less workers when you retire. You will take less money out of the system, that is 'the tax.'
It's a tax, it's forced on you and it's not a CHOICE. You'll never get back YOUR money unless you live to 95-100 years old, it should be a CHOICE to take CPP and if you do you can take the whole amount when you want since it's YOUR money.
we should also be able to decide what to pay tax on. ive never used the hospital and i have to pay an insane amount of tax for all these sick people. i should be able to keep my money and not support this trash healthcare system
Of course the CPP is a Payroll Tax. If you never worked in your life you would still get OAS and then get topped up with GIS. Maybe there should be an option of directing the employee part of CPP to your own retirement vehicle.
Why do you think they did it this way? Would it not have been easier just increasing the max earnings at 5.95% to whatever number would result in $4055. Seems like they have over complicated it by adding a new tier at a different percentage.
The different percentage is because the new program relies more on investment earnings and is fully funded and inter-generationally fair. You only need 4% contribution instead of 5.95% contribution to get 33% income replacement at retirement on that portion.
CPP and OAS need to be tax free. Need to change taxes so that all gross income is taxed; then your CPP is not taxed when we need every penny to survive. Next is that we need to be educated early in life about saving for retirement; it needs to be taught and discussed in high school. I didn’t have a financial mentor in my life and always thought I’d have loads of time to save up but I never got around to it and now am struggling.
Make sure that you have other sources of income after retirement. I get sick of people saying my money is almost gone or I live on a fixed income. CPP is not a fixed income it will increase with inflation. With the crazy inflation we're having now there should be quarterly increases absolutely for sure I look forward to January 1st when my CPP will be increased. Make sure you have an RRSP make sure that you have a the TFSA. If your finances are done correctly your money will not run out. If you can manage to live forever your money will last forever.
Absolutely! You should NOT rely entirely on CPP. It's just there as a minimum basic income to ensure that all Canadians have at least SOMETHING when they retire
CPP is not a government pension. It is what we pay into it on our payroll and our employer also contributes to it. Only Old age pension is a Government pension.
The annual limits rate is not nothing. It is EVERYTHING. It is raised everytime they want raise CPP benefits to those that need as a way to get more money and then they will give those seniors pennies or like 30 bucks more a month BUT all govt employees (and are like 4 million of them) have their pension plans tied to the CPP maximum in their union agreements. So everytime they raise that limit they can put more in their pensions and the govt has to match it 100%. For example teachers can put in up to 19% of the CPP maximum a year and get it matched 100% under their agreement. Thus everytime they raise it, those that need get peanuts while it costs our govts tens of billions more in pension liabilities to people who already have good pensions, pay, and benefits and don't even pay taxes.
I had to jump out. A lot of RUclipsrs for some reason have their hands and arms swinging all over the place non stop, and it becomes quite a distraction. Others seem to think that they have talking hands. It's the craziest thing that I have ever seen.
I've always been very animated with my hands while I talk and I also get pretty excited when I talk about investing and such. It's just the way I am 🤷♂️
@@CanadianTShirt I mentioned this to other RUclipsrs, and they had a good laugh and admitted that they do the hand/arm movement thing to look professional. Sometimes I will play the video at 1.25 or 1.5 times the normal speed, and then it does not bother me as much. I apply the same thing with those who edit their videos and remove the pause gaps between sentences. It becomes one long long long....long long sentence, but changing the speed at least puts it in a separate category. Others speak half a sentence, then pause, then maybe three words, then pause, then complete the sentence. That one really drives me up the wall. But played at 1.5 times the normal speed, seems to reduce the annoyance significantly.
So you know. CPP is not administered by the Federal government, it is administered by an independent financial firm. When the firm "invests", much of that money is loaned backed to the Federal government at a reduced rate of interest for whatever programs they choose. It is a form of tax. As I read the financial report. 2/3 of the way in 3 things must happen to keep the CPP viable at it's current rates. 1. Premium must substantial increase 2. Influx of new payees must be introduced 3 (The kicker) The mortality rate of people over 65 has to increase significantly.
What, exactly, is the government "investing" this money in? And if it's "investing", shouldn't Canadians be getting a lot more in return? Particularly those that work without pause and contribute for 40+ years? I honestly don't believe that the money is just sitting there, being "invested" on my behalf....especially with this government.
If CPP is not a tax then why is it not optional? Why can't I just save my money on my own instead of trusting someone that is billions of dollars in debt? It is a scam!
Freeland, who is on the WEF Board (conflict of interest) has been "investing" CPP funds into the WEF and various "Foundations" that in no way produce Anything that will give us a return on our investment. Liberals are squandering our pension.
A video about post retirement benefit would be great. I am a little confused about this as I have turned 65 and still working and paying to CPP a detailed video about this would be great thanks.
I think this is good. So many of our elderly don’t have savings to live. With a small $188/year (above the normal increase). You’ll get 33% of your income (up to the limit) covered
The original target of CPP was to cover 25% of your income during retirement but now we want to bump it up to 33% Yes I'm sure there will be a bunch of people groaning and complaining but as you said, we don't want to leave anyone behind. This way, everyone in Canada will have at least some level of income to get them by at retirement =)
@@carloslinan88I think you fundamentally misunderstand investing. It goes into the pool and pays out when you retire. If you die before then that money then gets spread out to cover your family when they hit the age. It’s like saying a defined pension plan is bad because it goes into a pension fund LOL
Hopefully, Alberta pulls out of the CPP. I paid $3754.45. That is the maximum. It goes up every year. My employer also has to match that amount. We're getting screwed over by the government every year. I, for one, will be voting, yes, to leave the CPP and vote yes for the APP.
I notice you didn’t mention the theft of a large portion of the money placed into the fund. Back when the CPP was started, there was this large chunk of money sitting there, and politicians can’t abide that sort of thing. So the federal government started handing out “forgivable” loans to the provinces, (mostly Quebec). So the CPP, which was actually well thought out to start with, was squandered on politically expedient projects. Now the CPP has to be partially paid from current taxes.....thank you liberal party of Canada
CPP costs 2.3 billion per year to administer. There are 21.473 million taxpayers outside of quebec. That's $107 per taxpayer per year to administer. That's ridiculous.
It doesn't go towards the government or the prime minister or anything like that. It's totally separate from taxes! It's just a way to ensure that EVERYONE will have a retirement income, even those of us who don't save up for it themselves (through the RRSP, TFSA etc) It's kind of like a "forced" retirement plan 😄
@@ShihabPersonalFinanceremember these are totally separate people making these decisions. The Bank of Canada determines interest rates, the CPP investment Board manages the fund and the federal government runs the country. They are all 3 entirely separate things.... believe me, you do NOT want the prime minister to have the power to change interest rates... that is a very slippery slope...
@@ShihabPersonalFinanceBut I agree, I hope that interest rates do come down but I wouldn't hold my breath anytime soon. Hopefully towards the second half of 2024 🤞
For some reason I have a feeling the amount. I've paid my entire life from working thirty Years or more, it's not even gonna come close to what i'm going to get back in the end, so someone's making money
I know what you mean but that would defeat the whole purpose... we ALL pitch in so that EVERYONE will have some level of income in retirement. It's basically the government "forcing" you to save up
But you should NOT rely exclusively on the CPP. You ABSOLUTELY must invest and save for your own retirement, in addition to the CPP, through your RRSP, TFSA etc.Take charge of your own financial future! You never want to rely on anyone, especially the government! You don't want to be in a position where you "need" CPP but it's always there for you regardless 😁
@@savibasra2127 "doo you think person lefts with some amount after already being deducted with cpp EI federal provintial hoop(for some) ??" Most definitely with a proper budget.
It’s already fucked my retirement as i haven’t worked for 10 years and Feminists and other socialists haven’t helped me with the jobs that are still in existence
*Yes there will be money, Canada is a sovereign Country with it's own currency CAD$, only the government can produce CAD$ therefore we will never run out of money= Modern Monetary Theory* *don't worry we will vote this guy out next election and vote for common sense*
So if I retire at 65 years of age and contributed since the age of 18, die at the age of 65 and one day, who gets all the money I contributed? I’ll answer my own question, no one. It’s a F-ing scam/tax
Make sure you watch this video on my YEAR-END TAX SAVING TIPS 👇
ruclips.net/video/xLXup5L-S2Q/видео.html
The strategies in that video are very important EVERY YEAR in December, not just in 2024, to start your financial New Year off on the right foot 🇨🇦
And watch my PAY STUB EXPLAINED to see these CPP deductions in action with my actual pay stubs 😊
ruclips.net/video/uFg3tDxmqiE/видео.html
And watch my Canadian TAX Guide playlist (silver thumbnails) to make taxes simple! 🇨🇦
ruclips.net/p/PLj8bU3AuW2qEA_ik7NOAIkBY02nt7KAPj
Thank you so much for your comments I am going to watch those videos 🙏
I like to say that you have a great way to clearly explain Canadian finances. I can’t find anyone explaining Canadian taxes better than you. Keep up the great work.
Thank you so much Rob for those kind words! 🙏
I know taxes and CPP aren't the most exciting topics but they do affect EVERYONE so it's so important to understand how they work and plan for it! I'm glad that my videos have helped make that info digestible 😊
Hi Canadian in a t shirt, can you let us know what changes if any are happening to pensions for seniors already retired. Any hope for the better for us? Thanks.
Thanks for explaining the new changes to CPP. You mentioned that playing more into CPP means that you get more out of it but if the reason we need to pay more into it is to make up for inflation, then that doesn't actually mean we get more. It just means that the value of our money is decreasing, so more money needs to be put in just to keep the value of CPP the same as before inflation came along.
You're right, but they also invest our CPP money into things that will (hopefully) return interest to the fund.
@@Tracey66 Pension plan invested in India
@@Tracey66 six billion of the CPP fund's assets is invested in Alberta's oil and gas sector for starters.
@@allglorytojesus2023 The hard truth is that we do not even know if the earth will be habitable in the coming years; consequently, I do NOT believe that anyone, including you, can predict with any reasonable degree of certainty what the state of inflation will be by the time you collect the pension that you may be entitled to .
If, god forbid, Poilievre ever becomes Prime Minister, we will be in scary shape in terms of the environment so it will not really matter. I'm pretty sure that Canada's physical size will increase after we become part of the USA because of Poilievre's plan to americanize us Gus.
I think this is the attempt to steal money from taxpayers
Thank you, Adrian, for another textbook explanation of changes coming down the pipe. Really appreciate your guidance, explanations, and incredible ability to get the info across in a clear manner.
My pleasure buddy! I know that taxes and CPP aren't the most exciting topics but it really does affect EVERYONE so it's important to understand the changes and plan ahead for it! 😊
And thank you so much for those kind words! It really does mean a lot! 🙏
I second this comment, thanks for your hard work
@ritabenkhalti8809 thank you Rita! 🙂
I always forget about the CPP because I don't really want to rely on it when I retire. I plan on retiring early anyways using all the investments I've done since following you. Thanks for all the videos and your very useful guidance!
That's what I LOVE to hear! Yes you NEVER want to rely on CPP. It's up to your to make your own retirement plan through the RRSP, TFSA etc. But the CPP is and always will be your money so you will have it as a bonus, when the time comes =)
And thanks man for those kind words! I really do appreciate it! 🙏
Im living off cpp & cant spend it all having money left over every montg
I do rely on it. As a retired senior with disabilities that issue disappears from all consideration by federal govt. So That wee bit extra help cover supplements and Naturopath treatments of $399 every two months.
You don't get much but with a limited income that is NOT a biweekly income; it's limited to around $2000 so good luck eating well, covering rent and heating/AC costs. Dam glad I refused and spurned the Pharmaceutical/government plandemic scam for trillionaires as my health is still improving with no dam mNRA or the shit issues like falling Dead.
Here in Alberta, our provincial government is trying very hard to take us out of the CPP, so we REALLY have to not count on that. :(
Is the CPP in the bank "yours" once you die? No, you cannot pass it down to your kin or spouse. It's tax.
Your spouse gets half. Its called a survivor benefit.
@@mtnphot weird because when I pass, my whole house will be directed to whomever, in full. No special survivor benefit. Still a tax.
A spouse or child/ disabled dependant is eligible.
@@texaspotency9147oh don't do it that way.
no no no.
BAD
your beneficiary will get creamed by taxes
you want the home to have beneficiaries listed as owners.
or a family trust is listed as an owner.
This way when you pass. Your beneficiaries are already on title. or have use of the property via the trust.
Other wise they are getting capital gains taxed on the full market value of the home.
@@mtnphot Semi incorrect, CPP Death Benefit is half to your spose or next of kin, The survivor’s pension is
a monthly benefit paid to the surviving spouse or common-law partner of a deceased contributor.
I love your videos! No bulshit, straight to the point, yet super clear and comprehensive. Thank you sir!
Thank you! That's what I try to do! I talk fast, cut the crap and get straight to the facts
I HATE the idea of wasting anyone's time 🙂
It is very clear now as I was very confused when I herd about the second tier. Many thanks, Adrian.
My pleasure Enid! I'm glad I was able to clear it up! Thanks for watching! 😊
THIS REALLY SUCKS. I pad all my life into CPP involuntarily. I also paid involuntarily into my work pension. Now that I am retired I get taxed again on that. So you can't tell me I get my money back. All I am doing is paying ever higher taxes.
Both CPP and your work pension are before-tax deductions, so no you don't get taxed "again", because you never got taxed during the contribution.
It will suck less if you learn a bit more about your own paycheck and your own retirement planning.
They are taxable when you retire. If you have made provisions for a comfortable retirement by yourself, you will lose most of the income from the CPP in taxation. If you die young you lose everything you were forced to contribute so it does not go to your estate. Survivor income for your spouse is half what you were getting and only if they have not already exceeded the maximum. They get a portion only up to the maximum. If you divorce the feds take 35% of the splitting of the pension funds for themselves. And your employer is being forced to match the funds on top of a regular pension. It is an involuntary ponzi scheme where the only winner is government.@@Narcissist86
It's based on your gross monthly income. Example: you earned $4000 last month. Your CPP payments are a percentage of the $4000. At the same time you pay the provincial/federal tax of the Full $4000.
Not [( $4000 - CPP contributions) x provincial/federal taxes. ]
Then when it comes time to collect your CPP, which has been initially tax, your CPP monthly income is taxable.
Why? It's a savings investment plan of your taxed contribution of your gross pay.
It should not be considered income. It's savings.
We dont get the compound interest. QPP retirees get total of $1000 mo more than CPP retirees,at age 70
@@Narcissist86 "before-tax deductions" technically that's true, but in practice you pay more times over in different ways. There are many reasons why CPP is a bad deal, for one, the "tax break" you are getting, is not really a break, they've been instead taxing your income more, after the contribution, to a higher rate to make up for it. They simply hide it from view, and expect you to be happy.
Everyone will be FAR better off, building up their own retirement fund, and governments should give people the option to opt out, but instead they've made it involuntary. Sure, it perhaps works best for fiscally incompetent people, but it's been a bad deal for everyone else.
It should be mentioned that workers on the lower income scale will receive much less then the current maximum monthly CPP payout. So someone making roughly half of the yearly minimum salary to pay the maximum amount of yearly CPP deductions, will receive half of the maximum monthly payout.
I'll be making several videos about the CPP, especially how the pension income works during retirement. There is a TON to discuss!
But at a high level yes, the more you put in, the more you receive. There are other government funded programs to help retirees with lower incomes as well
@@CanadianTShirtwill You talk about them too please?
@@amyhort8359 you bet!
They can get Provincial Welfare if that’s the case I know a few who get CPP and Welfare so it works out to max CPP
Let's not forget that Danielle Smith wants more than half of the CPP for Alberta.
Good we paid it.
Alberta paids the most into the CPP so they have every right to pull out of it. The Criminal Liberal Federal government is scared because they probably sent most of the funds
As an Albertan, I want out of the CPP!
As an Albertan I 100% agree….
@@erncooper1693 It comes down to how much was put into it aswell. Alberta and Ontario typically have higher wage earners, therefore they pay more.
I love being subscribed to you. I'm always learning something important about my finances.
Awww thank you so much for those kind words! I really appreciate that! 🙏
Don’t normally comment but wanted to let you know your videos are fantastic. You communicate the information in a way that’s very easy to understand. Great stuff👍🏼
Thank you so much! I truly do appreciate you taking the time to leave a kind word! 🙏
Sad part is the government holds your investment for 40 years and when you draw on it it is a taxable income, so if you have rrsp or a job pension you will be taxed on ALL incomes
and then tax an extra 15% of EVERY dollar that managed to survive all those previous income taxations.
The government is desperate for money while it finances pet projects with zero return on investments using our money.
Well yes, that's because it's INCOME, and therefore subject to taxation. And it's part of the social network, without it many people would retire broke and then we would be stuck with an even larger bill supporting these folks.
@@toddstevens8506 Your INCOME is taxed again after you haved waited for over 40 years with a massive higher tax rate.But if you are ok with that then I guess you trust the government more than I do.
@@Wally-g6b I think your confusing your payroll deduction with a tax, a deduction is not a tax. You pay tax once, when you spend it, as income, in retirement.
Thank for breaking this down intelligently and comprehensively
It's my pleasure! That's what I try to do in my videos! 🙏
And thank you for the kind and level-headed comment! As opposed to a lot of the angry ones on here...
I just want to inform people with the facts... but people are getting mad at the weatherman for telling them that it's going to rain 😅
Man, my CPP contributions are not MY money... if it was my money my family would be eligible for a full return of what I payed in if I passed away... thats not the case. If it was my money, I'd be gaining 8% per year on my contributions and not basically peanuts for what I payed in.
It's a forced community fund that steals from Peter to pay Paul. 50% of your contributions go directly to a retiree and do not get invested. Average rate of return is 2.1%... way below market.
"It's a forced community fund that steals from Peter to pay Paul. 50% of your contributions go directly to a retiree and do not get invested."
Except that the fund is sustainable and does not operate in the manner you described. The CPP fund is one of the best managed funds in the world.
"Average rate of return is 2.1%... way below market."
Except you cannot compare equity to fixed income that also acts as longevity insurance.
@@Narcissist86 2.1% (if that's what it really is on average) is an incredibly low return, it won't cover inflation, not unless the figure has been adjusted for inflation. Even for a fixed recurring income investment, it is low. If my fund manager got that kink of return, I'd fire them.
@@geekinasuit8333 "you cannot compare equity to fixed income"
You can say the CPP isn’t a tax but it’s mandatory. It’s a tax, abet a payroll tax
It’s not a tax. It’s a defined benefit pension fund.
what happens if you die before you can even collect any pension, does your family get it? A legal foreign worker pays into cpp, doesnt benefit from it but still pays. Its 100% a tax
@@doom2060 That they tax you on when you collect it at the rate of ~25% so the current max. you collect with OAS is ~$2200/mo less 25%
yes, to majority of the workforce these days it's 100% a tax because we would rather have the extra income now rather than 10 years before we die :)
@@doom2060dude it's a freaking tax. I don't know why lots of people are saying it is not a tax. Government uses it. We are forced to deduct it.
Great video thank you ,
I live in Quebec and would appreciate (and others too)
a QPP video with some retirement scenarios !
Cheers
Thank you! I try to avoid provincial topics, I want to make my videos as general and accessible to all Canadians as possible
I know I have a significant Quebec audience so I will consider it but I can't promise anything! =)
Also I've never lived in Quebec or worked there so I don't like talking about topics that I don't have personal experience with =)
So happy you make these easy-to-understand videos,
It's my pleasure! I'm happy to hear that my videos have been helpful! =)
Very helpful and informative, Adrian! You do a really great job of breaking things down and making it easy to understand.
Thank you so much for those kind words! I know taxes and CPP aren't the most exciting topics out there but it's important to understand and plan ahead for it! I'm glad my videos have made these a little easier to digest! 😁
Great video , clear and straight to the point . Simple Thank you for this
It's my pleasure! I'm glad you found it helpful! =)
Thank you for the extensive video - You are screwed if you are self-employed and have to pay over $8,000 a year - robbery - would prefer to invest everything myself and would come out way ahead of this whole scam.
It definitely hurts paying double the CPP, especially when you're business is just getting started. That is certainly one of the things you MUST consider before quitting your job!
I go over several strategies to reduce this extra burden on you and your business in this video here, the DOWNSIDES of Running a Business in Canada =)
ruclips.net/video/ST1_Zem8AcM/видео.html
1:28 The money you pay into the CPP is not your money and you don't always get it all back. My dad paid into the CPP his whole life. Started collecting it at 65, died at 69 and the estate received a $2500 death benefit. Pooled yes, but not all your money.
Your mother’s CPP, as your father’s survivor would have received an increase in CPP, up to the maximum.
Unfortunately they were divorced many years before he died.
The increase is because the government has suddenly realized there isn't enough money to go around and they've probably lost most of it on the bond collapse, so they are taking more away from workers who can't afford it to pay for the older generation that's far larger and also can't afford it. By the time I'm needing it there wont be anything left. The money they are taking off for CPP is money I could be putting into my own retirement plan and then I wouldn't need CPP. CPP is a solution to a problem they created.
CPP’s most recent actuarial study confirmed that the plan, as currently implemented and accounting for the pending changes, will be robustly funded for 75 years - the maximum period they consider. Rest assured, your CPP benefit will be right there when you’re ready to take it.
Exactly, this is so true.
@@James_48dude look at current economic situation. Whole world's as well as Canada. The unpredictability is ridiculous. Over past 10 years, scenario of jobs have changed. Lots of different benefits have introduced which are also being misused by lots of people. GenZ and milennials have literally no guarantee that they will ever get their cpp back or even live till that retirement age.
@@rachelmatthew6771 Dude - facts don't lie. CPP is funded, and no one is going to lose their benefits. CPP is fully separated and managed from government spending. This is not the first time we've had to navigate economic turmoil. All this conjecture about CPP not being there in the future is absolute nonsense - because it is just that - conjecture - none of it is founded in any data. You want to talk about unpredictability? I assure you CPP is perhaps the most predictable thing you will be able to count on in the future. Genx and millennials have nothing to worry about - so there is no point in stoking fear without any merit.
@@James_48 i dont know how old you are. But you seem to live in a delusion. We literally got to see how government hands in benefits. Especially during covid, covid benefits were handed out without any verification. Even non residents got the covid benefits and got misused.
I dont know what you mean CPP is funded? CPP is a tax. Every person is forced to pay into it in the hopes they will get it after 65 or later.
CPP worked well till now cuz there were more people paying into CPP versus pensioners whereas now situation is changing. Baby boomers are started to retire in high numbers which has created the imbalance hence the increase in CPP.
Who said this is the first economic turmoil? But look where this is leading us. If you are a kid I would understand that one might not have experience to view the world in an experienced manner but any decently capable adult can.
Why are you so delusional? You are saying its a conjecture and cant be founded in data. How in the hell can you find data for something that will happen in future? Also, you can make estimates based on current scenario and usage of CPP. Also CPP is taxed when one starts getting the payments after retirement.
Yes you are totally correct that Gen X and early milennials dont have anything to worry that. I mean Gen-Z and later millennials wont reap the same benefits that current pensioners are reaping.
Great Scott, thanks Adrian! You could look at it like a tax, especially if you pass away before or in the first few years you start collecting it, as any amounts your spouse or children would receive would be peanuts. If you're single, it would just be gone. That's why I max out my TFSA and RRSP's as those are my own investments and will roll over to my spouse in full.
Great just what we need... more taken off payroll.
Make sure you watch the whole video! I explain how the CPP is NOT a tax!
Yes it will be more money coming out of your paycheque, that is certainly true. But it is still YOUR money! You will get it back!
I don't love seeing the CPP coming out of each paycheque either but I whole heartedly support the idea of the CPP. We all work together to ensure that NO ONE gets left behind. Everyone will have at least something to count on when they retire. And that's worth it =)
I know how the CPP works. Being a Gen X-er I just don't think I'm going to get much out of this 2nd tier of CPP.
Many people are having trouble making ends meet in these difficult times and INCREASING payroll deductions does not put food on people's tables nor does it pay for mortgage interest.
Our former Ontario Premier tried to foist this increased CPP on us. The Harper government said no but then the Trudeau government ended up foisting it on the entire country.
Cost of living increases aside, wouldn't you rather have $300 extra to invest in your own portfolio? An extra $300 your children inherit if you die? Ya that's right the CPP survivor benefit is like 2 grand if you die early.
Alberta is also thinking of leaving CPP and have claimed HALF of its entire net worth. What then?
So you can afford life as a senior.
Cristal clear, as usual !! Great job Adrian. Your videos help me so much.
Thank you Gino for those kind words! I'm glad my videos have been so helpful! =)
Please can we have more details on QPP and CPP, payroll deduction, the maximum amount per pay and when the enhance will be taken : during or after. I like the period of the year when I get the break from the QPP. The government calculation tools, did the get updated in their forecast too.
You bet Estelle! I will be making a whole SERIES of videos on the CPP, there is so much to cover! I just wanted to make this quick one on the upcoming changes =)
I enjoyed your video and information on the c.c.p. Thanks for a great explanation. 😊
I'm glad you found it helpful! Thank you for those kind words! =)
My favorite thing about these videos is not just having thing well explained, but having the information put before me in the first place. Honestly! Without Canadian in a T-Shirt I would simply be ignorant to most of these policies and policy changes. I know I could remedy this by finding more direct sources, but the idea of wading through government sources to gleam relevant knowledge is a bit intimidating to me.
There is So Much Western Media Doesn't Tell You.
ruclips.net/video/owsxiFJiGDA/видео.html
Clear and concise. Thank you.
That's what I try to do! I talk fast, cut out the fluff and get straight to the point! Thanks for watching! 😊
Inflation is reflecting everywhere except in my pay 😤😤 this inflation is a big scam
That is beyond frustrating.... I am now self-employed but if I was working for someone else, I would expect them to raise my salary to at least match inflation...otherwise it doesn't seem like I would feel fairly valued...
Is there a REAL way to calculate inflation. A year ago, I heard it was 9%, that was before the half million dollar home, 3k for rentals and 3x the cost of food.
While it may not be exactly a tax, it isn't entirely yours either. If something material is truly yours, you can give it to someone, say a child, as part of a will if you die at a relatively young age (i.e. you might have contributed many years and died at say 59 years old before collecting CPP). So it kind of is a tax too, that disappears with no benefit to your friends and family.
Yes but the same argument can be made with anything you do with a long term outcome...
You don't benefit from the health benefits of working out if you die early... you don't benefit from your retirement fund if you die early
No you won't get ONE giant cheque from the CPP when you retire, you receive monthly income! And that's the point! You receive that money until you die!
And yes you CAN pass that money onto your spouse or children when you die. I'll cover those survivor benefits in an upcoming video =)
@@CanadianTShirt if it can go to a child then that is much better. I thought only spouse.
Thanks, Adrian, your videos help make me feel informed about my monetary life in Canada :)
It's my pleasure! I'm happy to hear that my videos have been helpful! =)
I am not entirely sure JT hasn’t spent all our CPP contributions, other. Wise he could give the Albertans their contributions to fund their pension plan
Yup, I'm sure pee pee boy will spend it on forgivable loans for billionaires.
I am an Albertan, any despite what D Smith says, most Alberta's do NOT WANT their pensions at risk because D Smith wants her grubby hands on it to give to her buddies in the Oil sector.
This would be a massive mistake.
And thinking Alberta will get 50plus % of Canada's CPP is living in a dream world.
She is a con artist.
Neither of you two lackwits understands that the CPP is separate from government spending?
Alberta here. I will be voting to leave the CPP when it's put to a referendum. The Trudeau government is trying their hardest to make Albertans believe the APP is a bad idea. It's working on the uninformed who only watch Trudeau's mainstream media.
But for those of us paying attention, we know it's good for Alberta.
Every province takes the money and runs whenever they have a chance. So I don't feel the least bit guilty for Alberta trying to offset Trudeau's carbon taxes.
Besides, Albertans did not vote for Trudeau's carbon taxes. The rest of Canada did.
No guilt here.
the cpp is a ponzi scheme. You are told it is well funded but people were also told everything is is fine take out more loans the day before the great recession. That is why Alberta cant be allowed to leave the union, they are the only thing holding it up. that is also the reason trudy is pushing hard to get migrants into the country. he needs suckers working not people reproducing and having more dependents.
Thanks for the clarity, Adrian. 🎉❤
My pleasure! I'm glad you found it so helpful! =)
Great commentary. I still can't afford it, along with all the additional taxes that the Government applies to me. The government does not help the homeless, or provide a real cost of living income to help the impoverished.
Who do you think provided for your schooling, infrastructure, hospitals, welfare, unemployment etc?
@@pozzee2809. Too many people forget this
Another easy to follow and easy to understand (for most) video! You rock!
Thank you so much for those kind words! I really appreciate that! 🙏
Clicked for C++... stayed for the interesting video!
hahahaha that just made my day! 😁
I haven't touched C++ in YEARS! I've always been a Python / Java guy 😎
Love what you do here Adrian, please keep making these great infovideos!!
Thank you Stephanie! That's the plan! 😁
Just remember folks! The average payout pre month in 2022 was $717 so don't even consider this as your retirement!!! Become financially independent and motivated is the only way to even consider an easy retirement!
You’re right, but too many people don’t plan or possibly think of how they’ll be financially when they retire.
I couldn't agree more! The CPP is not enough to fund your retirement but it never was intended that way! It's up to YOU to secure your own financial future by investing in your RRSP, TFSA etc. The CPP should just be there to help but don't rely entirely on it
@@CanadianTShirt I wouldn't say it wasn't intended that way, when these programs were put in place the life expectancy was only a few years past 65, they were never to last 30+ years paying out and in typical government fashion they are late to update programs(or is that planned?), plus saying its up to us to fund our own retirement is also a privileged experience because so many people rely on guidance through life why isn't it the government teaching these actual important issues and lessons in our society, to me its because the normal school system(which is also outdated) is more about learning how to be a disciplined factory worker for the masses once out of school. And one final thing, the whole being financially independent and free of working for the other guy is also not sustainable for the capitalist system we live in, if everyone didn't spend money like now, economy crashes, if everyone didn't work for someone, economy crashes. It's sad but true that if you can get out of the rat race before most people catch on, that's the real prize, cause once things start catching up in the financial independence area, it'll become less appealing and that's what capitalism wants. In my opinion of course
Great explanation! Thank you very much kind sir! Have a nice day.
I'm happy to help! Thanks for watching! 😊
I really enjoyed maxing out my CPP, usually in November, and seeing more of my money for two months. Guess that's over
I don't think so... if you maxed out your CPP in November, I can estimate your income (I won't do it publicly don't worry 😅) but you will likely max out your CPP contributions within another paycheque or two =)
I always maxed out my CPP in August and always saw extra on my pay between August and December. Looks like it will now be pushed back to September or October now. I wish there was a way of deciding on whether we even want to contribute to CPP or not. I am an experienced investor and have been for a long time.. I would much rather take the yearly CPP amount and put it into a low cost ETF. Who knows what will happen to the CPP fund by the time I am 65 anyways. I wouldn't be suprised if the government steals this money to pay off their debt
@@CanadianTShirt so cool, I just checked my "year to date" CPP and it's exactly what you said it would be $3754.17.
@@CanadianTShirt I also want you to know I used one of your older videos to encourage me to start a side hustle and set it up as a side proprietorship which has given me more control over my finances and allowed me to write off expenses for my business
@@freedomliberty83the CPP2 is only $188. That should be in one paycheque. The overall $400 increase is due to planned increases already. Which means you should have it maxed sometime in September.
A low cost ETF will not beat the CPP
What about the people that are 75yrs. old or more that paid all their life? Is there an adjustement for the cost of living today. We are going down and being forced to sell our house.
IT'S OUR MONEY...BUT, THE GOVERNMENT TAXES OUR CPP EARNINGS when we start receiving it back!! It's CRAZY that we earners have to PAY TAXES ON OUR CPP AND OUR OAP that receive...No wonder elderly retiries HAVE TO FIND JOBS IN OUR 60'S on...And most are working at WALMART😢😮 NO SENSE AT ALL!
CPP is considered to be income. Don't forget that OAS is also taxable income but GIS isn't if you're low income.
You have the cpp contributions taken off before you are taxed. Then when you use it you get taxed. They are not taxing you twice
To those who say, that you are not being taxed on CPP contributions, it's simply not true. The "tax deduction" you think you are getting, is being made up for, with a higher tax rate on what's left over. If you own a business, and pay yourself via dividends, despite not paying into CPP, (and RRSP, TFSA, EI) the tax owed remains about the same, that's clear proof that you are not getting a tax break from these "deductions", it's just imaginary made up BS.
Thanks for this! Very helpful.
My pleasure Douglas! Happy to help! =)
Adrian - this video was good, crisp and to the point. That said, I really wonder which Einstein came up with this formula of Tier 2 CPP/QPP deduction. As it is the taxes in this country is so high. Add to that 15% (approximate) GST/PST taxes. On top of it so many pay cheque deductions. The tier 2 deduction was not required. A day may come when the govt unable to support the pensioners will take away our entire salary.
I don’t see what’s the problem here? It’s still your money that you would get after retirement. If you’re already making enough to qualify for Tier 2, an extra $300 which you would get back in retirement anyway isn’t a big deal.
@Pantomime0709 I live in Quebec. As it is we in Quebec pay the highest income tax besides our qpp deductions are higher than cpp plus our EI and QPIP (not present in other provinces ) higher too. When you add all of these you will realize how much higher you pay.
Just because we get back higher in retirement if we pay now (tier 2) doesn't justify especially inflation is still high and are paying more for other services
@@Pantomime0709 If you can control your money, then you'll be able to get a better return out of it. I guess this isn't a big deal if you prefer to have the government to determine your meager amount of your return when you do finally retire...
But I don't trust the government with my money as I'll get a better return out of doing it myself and then there's also considering the lost opportunity cost of whatever that % is... Then you also have to consider inflation and the actual tax brackets when you retire. If you're paying low taxes now, you'll be shifted to a higher bracket when you retire as you draw from RRSP and CPP.
@@sandeeptanjore1253 "Just because we get back higher in retirement if we pay now (tier 2) doesn't justify especially inflation is still high and are paying more for other services"
Good thing CPP is inflation-adjusted.
@@Narcissist86 our salaries are not
Your info is so damn valuable and well presented. I appreciate the heck outta you man
Thank you so much Remy! I really appreciate that! 🙏
Especially after the rest of the comments on this video.... it's been a s***storm of conspiracy theories and political rants... 😅
I try my best to keep my channel a welcoming and accessible community for EVERYONE! I just focus on the facts and the numbers, my political opinions I will keep to myself LOL
CPP is a tax, because it is not voluntary. CPP premiums have gone up from $2500 to $4000 under Trudeau. That means less money for TFSA. It also adds burden on employers who have to pass on these costs to end consumers.
It's voluntary if you own a business, and take dividends instead of salary income.
Exactly. Less money for TFSA, and on top of that it's not part of your estate. You die before collecting CPP, your estate gets nothing of that money unlike TFSA.
Its also welfare for boomers. Since CPP is partially funded, part of the money you pay in now is used to pay for current pensions.
It is *not* a tax. Your name needs to be changed because you're obviously wrong here.
@@CroneLife1 how? Can I stop paying it?
Adrian, great job as always. Cheers
Thanks buddy! I'm glad you found it helpful! =)
No, it's not a tax ... until it kind of is. You can't opt out. Also, You pay in to it your entire life and they call it "your" money. Then you start withdrawing it. If you die within a few years of retiring ... suddenly it's not your money anymore. Your estate doesn't get it. Sure a survivor may be entitled to some in the form of a survivor's benefit, but otherwise the money you paid in all your life just stays in the pool ... which pays out to someone else. So, it's not really your money. It's the pool's money ... which is just like taxes.
What a grand ponzi scheme.
And then they can induce new vaccines for new diseases that will ensure we perish away by the time we intend to use these benefits. Geeez what a bunch of incompetent bigots who dont want to focus on lowering taxes, inflation but just want to take our $$$
Nice explanation.
Thank you! I'm glad you found it helpful! =)
Government still controls how much you take out at one time.
Yes your monthly CPP income will depend on many factors, mainly how much you contributed and what year you choose to start withdrawing
I'll cover that calculation in a follow up video! =)
Thank you for explaining this so well.
It's my pleasure! I'm glad you found the video helpful! =)
It's a tax. Even the Canada Revenue Agency says "It's a tax". The money is not "yours". You die before 65, no benefit to family except a partial to a spouse, if you had one. The $2,500 death benefit, is actually down by more than $1,000 from the mid 1990's. And, not every Canadian gets CPP, only those that contribute get it.
Thank you for the information
My pleasure! I'm glad you found it helpful! =)
Great Video! When can we expect to get more credit card videos? Could you do a yearly refresher of the video you made showing all the cards you carry in your wallet? Thanks so much! :)
You got it! I am actually working on a NEW credit card video this week! I'm hoping to launch it on Sunday! It's a BIG game changer that I am super excited to share with you all! 😁
And yes! I will update my 7 Credit Cards I Use Daily video in early 2024! I refresh that video every 2 years so it is due for a new coat of paint! And some new info! 😁
Awesome, thanks so much Adrian!😊
@@fadimatloub7535 my pleasure! 🙂
A related question, when does the government typically release the upcoming year's Maximum annual pensionable earnings rates for CPP?
They release this information towards the end of November. I'll be making an updated video when that information becomes available =)
So...my CPP payment usually stop in late October or so, maybe November...I'm assuming that is because I maxed out. So next year the CCP payment will continue to Dec 31, but at a different amount after late October. I thought my CPP was going to current CPP payouts and when I retire, well, someone else will be paying in to cover my payments... You are saying otherwise.
Yes, you are correct and the person in vdo is incorrect. You are paying for the current pensioners. This fund is also used as tax. The person in vdo provided incorrect facts
With this change, you'd probably stop CPP payments in early December, late November. Also note that the percentage drops from 5.95% to 4% so you'll be getting more take home.
Thank you.
My pleasure! I'm glad you found it helpful! =)
The Gov't saves on paying out CPP if you die before you can collect all your contributions. They just keep it. Since the introduction of the MRNA, we're seeing a 20% increase in excess deaths, over and above the yearly average. That's HUGE savings! It's no wonder why the Gov't wanted to mandate it.
Couldn't agree more and I have seen first hand as a previous banker a customers CPP being reduced to half as they stated in a letter to her that she basically had enough savings of her own to live out the rest of her life (she was 75 at the time), and the funds can go to others that "really need it"..can't imagine how people actually believe that you can ever get anything TAX FREE or free period from the government, I would love to see a study of how much individuals paid into it and actually got back, I bet the numbers would shock everyone
Thanks for clarifying!
My pleasure! I'm glad you found it helpful! =)
This is a joke. Cpp gives us back pennies when we retire, if we invested this value for 35 years ( including what the employer pays as well) we'd easily get over a million and live off the passive income. What a scam.
Close but not quite. If we assume we invested the current CPP maximum each year for the past 35 years, and invested it all into SPY, your portfolio will be at about $700k.
Given the typical withdrawal rate of 4%, this gives a monthly payout of $2354. While it is true that this is more than the current CPP maximum of $1306.57, you should keep in mind that the latter is fixed income, indexed to inflation, and acts as longevity insurance.
@Narcissist86 SPY ( or s&p 500 indexes) has had an average yearly return of about 10% for the past 35 years, if we include the employer's contribuition we'd be able to invest about 7500 maximum each year, which would actually be a lot more than 1 million. Also we would only get the maximum cpp of 1300 if we decide to take it at 70. If you dont live that long and don't take it, that money is pretty much lost. I also dont think i wanna wait till 70 to retire, doesnt seem like a great plan to me, so if i retire at 60 (over 35 years of full timework for me) i'd get around 600/month, which in these days would be enough to 2 visits to the grocery store only. Again, it's a complete ripoff
@@0dmightyone0 I've back tested against SPY's real performance in the last 35 years to give that $700k figure. And it's no guarantee that you'll receive the employer's contribution either in an alternate scenario so not sure that's an apples to apples comparison.
And once again there's the additional point of longevity insurance, which you've conveniently ignored to support your notion that it's a scam.
I'm using 7500 max. contribution based on this year. I know it was less than that before. But i'm just calculating considering millennials and when we retire. Since max contributions grew 3k for the past 10 years, I can easily see it hitting 10k per year very soon.
I imagine the govt is doing this because they know that living costs are increasing, while salaries are not. Young workers do not have the means to save their own money for retirement, so the government has to forcibly increase contributions now to reduce the impact of the big problem looming ahead in the near future... at least that's my gut feeling.
You are partly right but actually a big reason for this increase IS because salaries are increasing (statistically speaking) Of course not every company and not every employer has been increasing salaries, at least not enough to match inflation and that is a frustrating situation....
But yes another big factor is the rising cost of living and thus the rising cost of future retirees! Especially as the life expectancy grows because remember, the CPP pays you every month until you die
Only issue is the CPP is based on the assumption population growth goes up. I believe someone said most social programs becomes a mandated pyramid scheme at negative growth. If you pay more into a system that is currently going into current retirees and there are less workers when you retire. You will take less money out of the system, that is 'the tax.'
Don’t worry they are making sure to import millions of Indians a year
Great explanation!! Thanks for making this video!
Thank you Tracy! I appreciate that! 😁
For everyone here, make sure you follow my friend Tracy, she's also a Canadian money expert on investing and real estate strategies! 🙌
It's a tax, it's forced on you and it's not a CHOICE. You'll never get back YOUR money unless you live to 95-100 years old, it should be a CHOICE to take CPP and if you do you can take the whole amount when you want since it's YOUR money.
we should also be able to decide what to pay tax on. ive never used the hospital and i have to pay an insane amount of tax for all these sick people. i should be able to keep my money and not support this trash healthcare system
@@user-vw6lj7sv3y Agreed. If I get to choose I wouldn't want to pay for you.
I'm a Senior already receiving the CPP, so this doesn't mean squat to me.
Very true... If you are already retired and receiving CPP then you've already paid your fair share!
All of the new enhancements and increased contributions won't affect you at all. But thanks for watching =)
Of course the CPP is a Payroll Tax. If you never worked in your life you would still get OAS and then get topped up with GIS. Maybe there should be an option of directing the employee part of CPP to your own retirement vehicle.
Why do you think they did it this way? Would it not have been easier just increasing the max earnings at 5.95% to whatever number would result in $4055. Seems like they have over complicated it by adding a new tier at a different percentage.
The different percentage is because the new program relies more on investment earnings and is fully funded and inter-generationally fair. You only need 4% contribution instead of 5.95% contribution to get 33% income replacement at retirement on that portion.
Not quite firsttttttttttttttt!
Still in the top 5!!! Not bad at all! 😁
hopefully we can still get something from CPP when time comes.🙏
You'll have to edit when Alberta gets the APP haha
I don't like covering provincial topics... I want to keep my videos accessible to as many Canadians as possible!
But yes I will certainly update you guys as it develops!
Thank you for this video.
My pleasure! I'm glad you found it useful! =)
CPP and OAS need to be tax free. Need to change taxes so that all gross income is taxed; then your CPP is not taxed when we need every penny to survive. Next is that we need to be educated early in life about saving for retirement; it needs to be taught and discussed in high school. I didn’t have a financial mentor in my life and always thought I’d have loads of time to save up but I never got around to it and now am struggling.
First viewer
Way to go Jade!!! You win the gold!! 🥇
Make sure that you have other sources of income after retirement. I get sick of people saying my money is almost gone or I live on a fixed income. CPP is not a fixed income it will increase with inflation. With the crazy inflation we're having now there should be quarterly increases absolutely for sure I look forward to January 1st when my CPP will be increased. Make sure you have an RRSP make sure that you have a the TFSA. If your finances are done correctly your money will not run out. If you can manage to live forever your money will last forever.
Absolutely! You should NOT rely entirely on CPP. It's just there as a minimum basic income to ensure that all Canadians have at least SOMETHING when they retire
It's up to YOU to take charge of your retirement plan by investing in your RRSP, TFSA =)
CPP is not a government pension. It is what we pay into it on our payroll and our employer also contributes to it. Only Old age pension is a Government pension.
The annual limits rate is not nothing. It is EVERYTHING.
It is raised everytime they want raise CPP benefits to those that need as a way to get more money and then they will give those seniors pennies or like 30 bucks more a month BUT all govt employees (and are like 4 million of them) have their pension plans tied to the CPP maximum in their union agreements. So everytime they raise that limit they can put more in their pensions and the govt has to match it 100%.
For example teachers can put in up to 19% of the CPP maximum a year and get it matched 100% under their agreement.
Thus everytime they raise it, those that need get peanuts while it costs our govts tens of billions more in pension liabilities to people who already have good pensions, pay, and benefits and don't even pay taxes.
I had to jump out. A lot of RUclipsrs for some reason have their hands and arms swinging all over the place non stop, and it becomes quite a distraction. Others seem to think that they have talking hands. It's the craziest thing that I have ever seen.
I'm sorry my hand gestures got in the way of the information I was providing... I appreciate that feedback
I've always been very animated with my hands while I talk and I also get pretty excited when I talk about investing and such. It's just the way I am 🤷♂️
@@CanadianTShirt I mentioned this to other RUclipsrs, and they had a good laugh and admitted that they do the hand/arm movement thing to look professional. Sometimes I will play the video at 1.25 or 1.5 times the normal speed, and then it does not bother me as much. I apply the same thing with those who edit their videos and remove the pause gaps between sentences. It becomes one long long long....long long sentence, but changing the speed at least puts it in a separate category. Others speak half a sentence, then pause, then maybe three words, then pause, then complete the sentence. That one really drives me up the wall. But played at 1.5 times the normal speed, seems to reduce the annoyance significantly.
simply awesome..
(subbed)
Thank you! I appreciate that and welcome to the channel! =)
So you know. CPP is not administered by the Federal government, it is administered by an independent financial firm. When the firm "invests", much of that money is loaned backed to the Federal government at a reduced rate of interest for whatever programs they choose. It is a form of tax.
As I read the financial report. 2/3 of the way in 3 things must happen to keep the CPP viable at it's current rates.
1. Premium must substantial increase 2. Influx of new payees must be introduced 3 (The kicker) The mortality rate of people over 65 has to increase significantly.
Thanks for sharing
My pleasure! I'm glad you found it helpful! =)
What, exactly, is the government "investing" this money in? And if it's "investing", shouldn't Canadians be getting a lot more in return? Particularly those that work without pause and contribute for 40+ years? I honestly don't believe that the money is just sitting there, being "invested" on my behalf....especially with this government.
It isn’t. It is being used by the Liberals for “other” investments.
If CPP is not a tax then why is it not optional? Why can't I just save my money on my own instead of trusting someone that is billions of dollars in debt? It is a scam!
Also, what if your die a year after retirement? Your family doesn't get all your contributions like they would if you invested on your own
We can thank socialism for this.
Freeland, who is on the WEF Board (conflict of interest) has been "investing" CPP funds into the WEF and various "Foundations" that in no way produce Anything that will give us a return on our investment. Liberals are squandering our pension.
Also cap EI. Payed into it for 30yrs now. Cap it at 10 years if you haven’t used it.
Agreed but what about the people that don’t contribute to society? How will they retire?
A video about post retirement benefit would be great. I am a little confused about this as I have turned 65 and still working and paying to CPP a detailed video about this would be great thanks.
There is a TON to talk about, I can certainly make several videos on that topic!
And if you turned 65, you can choose to stop paying into CPP. Do you know how long you plan to keep working? Thank you for watching 😊
I am physically fit and intend to work for maybe 2 or 3 more years
I think this is good. So many of our elderly don’t have savings to live. With a small $188/year (above the normal increase). You’ll get 33% of your income (up to the limit) covered
That's the plan! I'll cover this more in my upcoming CPP series (there is still so much more to talk about!)
The original target of CPP was to cover 25% of your income during retirement but now we want to bump it up to 33% Yes I'm sure there will be a bunch of people groaning and complaining but as you said, we don't want to leave anyone behind. This way, everyone in Canada will have at least some level of income to get them by at retirement =)
Seniors can live very well under $68,000 a year. We don’t eat as much any more and we shouldn’t have a mortgage if we were smart.
@@Metoo1111I think you misunderstood what’s happening
@@carloslinan88I think you fundamentally misunderstand investing. It goes into the pool and pays out when you retire. If you die before then that money then gets spread out to cover your family when they hit the age. It’s like saying a defined pension plan is bad because it goes into a pension fund LOL
Thanks Adrian!
My pleasure! I'm glad you found it helpful! =)
Hopefully, Alberta pulls out of the CPP. I paid $3754.45. That is the maximum. It goes up every year.
My employer also has to match that amount. We're getting screwed over by the government every year. I, for one, will be voting, yes, to leave the CPP and vote yes for the APP.
i feel like our CPP contributions should gain interest.
It absolutely does! The money you contribute (and your employer contributes) doesn't just sit there as cash...
It's INVESTED! That's what keeps the fund afloat over the decades and allows it to remain sustainable!
I notice you didn’t mention the theft of a large portion of the money placed into the fund. Back when the CPP was started, there was this large chunk of money sitting there, and politicians can’t abide that sort of thing. So the federal government started handing out “forgivable” loans to the provinces, (mostly Quebec). So the CPP, which was actually well thought out to start with, was squandered on politically expedient projects. Now the CPP has to be partially paid from current taxes.....thank you liberal party of Canada
It is absolutely untrue that any CPP funds have ever been used for anything other than CPP. It has never happened.
That did not happen at all
CPP costs 2.3 billion per year to administer. There are 21.473 million taxpayers outside of quebec. That's $107 per taxpayer per year to administer. That's ridiculous.
If its not optional its a tax. I would opt-out of CPP and EI if i could.
Great work as always, Adrian! Thank you so much!
Thanks buddy! I really appreciate that! 🙏
just another hand in our pockets....as Bassem would say
I wouldn't look at it that way man... yes it will be a higher deduction from your paycheque but it is still YOUR money! You do get it back!
It doesn't go towards the government or the prime minister or anything like that. It's totally separate from taxes! It's just a way to ensure that EVERYONE will have a retirement income, even those of us who don't save up for it themselves (through the RRSP, TFSA etc) It's kind of like a "forced" retirement plan 😄
@@CanadianTShirt they care so much, lower the interest rates so people dont lose their homes, we wont make it to retirement at this pace
@@ShihabPersonalFinanceremember these are totally separate people making these decisions. The Bank of Canada determines interest rates, the CPP investment Board manages the fund and the federal government runs the country. They are all 3 entirely separate things.... believe me, you do NOT want the prime minister to have the power to change interest rates... that is a very slippery slope...
@@ShihabPersonalFinanceBut I agree, I hope that interest rates do come down but I wouldn't hold my breath anytime soon. Hopefully towards the second half of 2024 🤞
For some reason I have a feeling the amount. I've paid my entire life from working thirty Years or more, it's not even gonna come close to what i'm going to get back in the end, so someone's making money
Wish we could opt out of this plan lol
I know what you mean but that would defeat the whole purpose... we ALL pitch in so that EVERYONE will have some level of income in retirement. It's basically the government "forcing" you to save up
But you should NOT rely exclusively on the CPP. You ABSOLUTELY must invest and save for your own retirement, in addition to the CPP, through your RRSP, TFSA etc.Take charge of your own financial future! You never want to rely on anyone, especially the government! You don't want to be in a position where you "need" CPP but it's always there for you regardless 😁
@@CanadianTShirtdoo you think person lefts with some amount after already being deducted with cpp EI federal provintial hoop(for some) ??
@@CanadianTShirt Yeah people are done handing out their money to other countries and to other peopple.
@@savibasra2127 "doo you think person lefts with some amount after already being deducted with cpp EI federal provintial hoop(for some) ??"
Most definitely with a proper budget.
Thanks Adrian, very helpful as always
My pleasure! I'm glad you found it useful! =)
There won't be any money left when we retire! This stupid feminist government is ruining us!
Lol.
It’s already fucked my retirement as i haven’t worked for 10 years and Feminists and other socialists haven’t helped me with the jobs that are still in existence
*Yes there will be money, Canada is a sovereign Country with it's own currency CAD$, only the government can produce CAD$ therefore we will never run out of money= Modern Monetary Theory*
*don't worry we will vote this guy out next election and vote for common sense*
Wait until Danielle Smith pulls Alberta out of CPP.
@@Slickpete83..”But” the more money the Gov. Prints the Less you get.
So if I retire at 65 years of age and contributed since the age of 18, die at the age of 65 and one day, who gets all the money I contributed? I’ll answer my own question, no one.
It’s a F-ing scam/tax