CFIB is pushing finance ministers to take forced retirement savings off the table permanently and asking them to shift their focus towards voluntary Pooled Registered Pension Plans (PRPPs) in all provinces.
The signs of trouble are looming
All signs point to trouble for Canadians!
If governments rely on the Ontario model to expand CPP/QPP, the annual premiums for someone earning $50,000 would go up as follows.
Trouble for employees: The portion of premiums paid by employees would increase by about $880/year.
Trouble for small business: The employer portion would also increase by about $880/year per. That means a company with 15 employees would be paying an additional $13,200 per year. The self-employed, who pay the entire premium themselves, would be paying an additional $1,700/year.
Trouble for the economy: Higher labour costs, with no increase in productivity, would lead to job losses, wage cuts/freezes or reduced hours for many workers. Some might escape unscathed, but everyone would be at risk.
Heed the signs – help stop the CPP/QPP hike As long as a CPP/QPP hike is still on the table, the signs will continue to point to trouble for all Canadians.