The launch of a new level in 2024 will prove too costly for many
The Canada Pension Plan will launch a new level on Jan. 1 and – no surprise – it will cost Canadians more.
That won’t happen. Even if Alberta were to leave, estimates I’ve seen suggest it would only be entitled to about 20 per cent of the CPP fund. Evelyn Jacks, who has written several books on taxation and runs the Winnipeg-based Knowledge Bureau, drew my attention to these changes in a recent issue of her company’s newsletter.
But now, here we are. The new regime takes effect in less than two months, at a time when inflation has many people scrambling to make ends meet.First, employees and businesses will have to deal with the regular annual contribution hike. For employees, the maximum annual payment will go up by 3 per cent to $3,867.50, as the pensionable income covered increases to $68,500. That amount must be matched by the employer. Self-employed people will be on the hook for the full amount of $7,735.
Raising benefits down the road is a desirable objective for any pension plan. But many people may be reluctant to pay higher contributions while inflation is eating away at their buying power. For a government that’s badly trailing in the polls, the timing doesn’t look great.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Canada Pension Plan changes will raise contributions at a very wrong timeThe launch of a new level in 2024 will prove too costly for many
Read more »
Monique Keiran: Railway scandal that rocked Canada marks its 150th anniversaryThe Opposition revealed that a business group had been granted the Canadian Pacific Railway contract in exchange for political donations of $360,000 (about $9 million in today’s dollars)
Read more »
Opinion: Canada's refugee pilot programs risk making refugees prove their worthCanada has cultivated a reputation for being welcoming toward refugees. However, a new pilot program risks jeopardizing that reputation by making asylum seekers prove their economic worth.
Read more »
Monique Keiran: Railway scandal that rocked Canada marks its 150th anniversaryThe Opposition revealed that a business group had been granted the Canadian Pacific Railway contract in exchange for political donations of $360,000 (about $9 million in today’s dollars)
Read more »
Climate council slams B.C. emissions plan, urges ban on new gas hookupsBC Climate Solutions Council told government its plan relies too much on renewable natural gas, instead of tested technologies like heat pumps.
Read more »
Protesters set to demonstrate across Canada as Israel-Hamas war ragesMONTREAL — Demonstrators are expected in cities across Canada ahead of rallies related to the Israel-Hamas war. In Toronto, a protest organized by the group Ceasefire Now is set to voice solidarity with residents of the Gaza Strip starting at 1 p.m.
Read more »