What the CPP boost means for the average Canadian worker

The federal government hopes to finalize the agreement by July 15 of this year and then begin collecting more premiums from workers and employers alike starting in January 2019.

Over the next seven years, the federal government is proposing to increase the CPP taxes by as much as $164 per month – $73 from workers and $91 from employers, to a total of $1,968 a year.

The result of this hike is that a middle-income Canadian entering the workforce now who earns an average of $50,000 a year would receive a pension of $16,000 a year (in today’s dollars) in retirement, instead of the $12,000 allocated under the current regime, according to Finance Canada.

To read more on how this may affect you, read the full article from cbc.ca at http://www.cbc.ca/news/politics/cpp-boost-average-canadian-1.3645303.

This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation, please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your circumstances.