Comments on: Downsized dreams

By: top SAP Consultant

top SAP Consultant — Sun, 13 Jun 2010 15:57:14 +0000

Which only means that they are all independent.

By: reality check

reality check — Wed, 18 Nov 2009 20:41:52 +0000

The article fails to mention that the pension account paid by federal public servants was 'raided' for 30 Billion dollars in the Cretien/Martin era to pay down the debt/deficit.

By: Skwigs

Skwigs — Sun, 15 Nov 2009 04:08:38 +0000

Great suggestions. The GST increase won't fly but the CPP rate increase and the RRSP benefit change are a great starting point. I'd be happy to pay moree CPP as long as the Gov't can guarantee that the money won't be dried up when I hit retirement 20 years after the baby boomers have sucked the pot dry.

I'd like to hear how you'd go about fixing the health care overspending crisis that will coincide with this issue. Politicians will finally be earning their money in the coming years.

By: Canuckguy

Canuckguy — Sat, 07 Nov 2009 22:10:55 +0000

Ahh, I have to retract a bit. Considering that each is grossing only about $16,000 each (Cpp&OAS), and coupled with the senior tax credit at 65, they would pay very little tax.

By: Canuckguy

Canuckguy — Sat, 07 Nov 2009 03:00:24 +0000

Years ago when the CPP was started up in 1966, it should have had a more ambitious goal. Some talking heads have made good suggestions that instead of capping the pensionable income level in regards to deductions, it should have had a higher amount. The current cap on pensionable income is about $45000 and the CPP aims to replace only 25% of that when one retires at 65. Also the premiums should have been higher for people without company pension plans so that they can have some sort of decent guaranteed pension when they retire.

By: Canuckguy

Canuckguy — Sat, 07 Nov 2009 02:48:50 +0000

Guy:
–You stated "After tax, this same couple will get approximately $2,600 monthly from CPP (at 90% of max) and OAS."
–I beg to disagree, $2600 is approximately what they get before taxes are deducted. Current CPP max is $908/month so 90% gives you $817 each. OAS max is $516/month. So the couple grosses $2666 before taxes assuming they don't get the OAS supplement.
–It's not much to live on comfortably unless one has no life. Just existing. Iif they have no other source of income, they are poor, period .

By: Canuckguy

Canuckguy — Sat, 07 Nov 2009 02:42:46 +0000

By: Guy

Guy — Wed, 04 Nov 2009 17:56:56 +0000

It's not how big your pension is, it's how much will it cost to live in retirement. In Winnipeg, a retired couple with no mortgage or car payments and paying for Blue Cross health insurance can live quite comfortably (covering all food, clothing, shelter, transportation and health costs) on $2,000 worth of expenses. After tax, this same couple will get approximately $2,600 monthly from CPP (at 90% of max) and OAS. No doubt that costs are different in different parts of the country, but the fact is retirement is not like going on holiday. People should not expect to spend thousand of dollars a year on leisure, nor should they expect someone else to pay for it, either through subsidized pension plans or preferential tax treatment.

By: Paul

Paul — Mon, 02 Nov 2009 16:07:10 +0000

"In 1889 German chancellor Otto von Bismarck crafted the world’s first government-supported pension for workers once they hit age 70 (it later became 65). That wasn’t much of a concession, though. The average life expectancy at the time in the country was just 40. "

That's the answer then. You don't collect CPP until the age of 130. Problem solved. If you can't self fund your retirement, you don't get one. Makes perfect sense to me.

By: P.O. Joe

P.O. Joe — Mon, 02 Nov 2009 02:22:28 +0000

Government (paid by tax payer) pensions will never be compromised. Just look at what the politicians pay themselves for a mere few years service on a lavish position such as an MP or MPP. Nothing short of civil disobedience will stem the tide of excessive government self indulgence.

How about the 2 plus billion squandered on the long gun registry? That would have helped a hell of a lot of pensioners…. No?

By: taxslave

taxslave — Sun, 01 Nov 2009 17:25:55 +0000

The only ones with a guaranteed pension are government employees. Indexed too. All courtesy of those of us that work for a living. and have no say in how our tax dollars are squandered.
The company that I work for pays me $2.60/hr for pension. Added to my cheque every two weeks. Up to me to look after it from there. Best system around other than cash jobs.

By: stueygee

stueygee — Fri, 30 Oct 2009 01:31:53 +0000

Sorry Ont goes up to 50% Jan 2010.

By: stueygee

stueygee — Fri, 30 Oct 2009 01:30:24 +0000

Jason,you missed one important point. DC plans are subject to "locking in" provincially. In Ontario I'm allowed 6.94% this year and 7.037% in 2010. This resets evey Jan 1. Each province has a different
locking factor. Saskatchewan unlocked their pensions 100% in 2002. The rest are all over the map. Ontario is 25% unlocked this year and goes up to 50% Jan 2012. You can say where it is invested but you just can't touch it. If there are no more increases here in Ontario, I'll be able to access my fund 100% when I reach 90 years of age.
As for the CPP we should make it into a universal pension plan. By that I mean each person 's plan is under their multi-part SIN#.
SIN# Basic contribution as it is now.
SIN#-A Voluntary tax sheltered contributions instead of an RRSP.
SIN#-B Company contributions to employee's plan.
SIN#-C Employee's contribution to company plan.
This plan would allow your money to ride along in the huge CPP fund. You gain all the benefits of being in the market which historically has outperformed all other types of investments. Also you wouldn't be robbed by hidden fees like brokerages and mutual funds charge.

By: Bob

Bob — Thu, 29 Oct 2009 18:49:03 +0000

Good ideas—where can I vote for you???
Bob

By: joannie1

joannie1 — Wed, 28 Oct 2009 22:58:15 +0000

Putting pension fund at the front of the line is a good idea, but not a solution.

Pensions are becoming scarce in the private sector and have exploded in the public sector. Lets end the lunacy now. The infrastructure is in place under the Canada Pension Plan to turn it into a foundation for everyones retirement. Increase the payout to $2,000 per month and let people save outside of CPP to improve their retirements.

Taxpayers no longer want to be on the hook for lavish government employee retirement benefits, pensions and freedom 55. Taxpayers do not want to be on the hook for Chrysler and GM pensions. Lets take everybody off the hook for things they don't have. 65 to 70% of the Canadian workforce has no organized pension

By: TGuy

TGuy — Wed, 28 Oct 2009 00:28:43 +0000

1. Phase it to 70.
63 and older? no change. Carry on. No worries.
60 and older? make it 66.
55 and older? make it 67.
45 and older? make it 68
45 and younger? make it 70.
2. Increase CPP/QPP contribution rates from 9.9% to 11.5%.
3. Change the immigration system to put slightly more emphasis on immigrants under 35.
4. Increase the tax benefit on putting money in RRSP's by 50% (increase the penalty for withdrawl by 50% too)
5. Quadruple the monthly childcare benefit from $100 to $500. Increase GST from 5% to 6.5% to pay for it.

There. Pension crisis MORE than solved. UBER solved.

Now where's my government of Canada 500k consulting cheque? I can put my recommendations in a nice powerpoint if necessary. I can also do the actuarial calculations (really, I can). Where's my money? If you have no money, I will accept an Order of Canada. Thank you.

-TGuy

By: JMJ

JMJ — Tue, 27 Oct 2009 21:49:43 +0000

"But if teachers don’t have to worry about their pensions, taxpayers sure do" We sure do as per the 'Partnership Agreement' that Taxpayers never signed: Ontario Teacher's Pension Plan Deficit and the upcoming Pension Crisis 2014: http://www.youtube.com/watch?v=diS6f8Jns40 Teaching the double dip Retirees can add $41,000 to their pension for 95 days of supply teaching. Is that right? http://www.torontosun.com/comment/columnists/moir... Teachers double-dipping. Taxpayers paying for it.

By: Craig O

Craig O — Tue, 27 Oct 2009 21:27:27 +0000

“Suddenly everybody has woken up to the fact that two-thirds of retirees are going to be underfunded”

How did this come suddenly?! Most company pensions have been underfunded for years, the savings rate has dwindled to next to nothing over the last two decades and we know there was going to be a wave of retiring baby boomers, well, since the baby boomers were born!

This is not a flash flood, it's a storm that's been building for over twenty years now and should have been aparent to everyone who picked up a newspaper every now and then. The sudden bust of so many pensions just brings to the surface what's been there all along – baby boomers have not saved enough for retirement.

By: Dakota

Dakota — Tue, 27 Oct 2009 15:54:32 +0000

That will teach the world a lesson!

Actually, there is a guy that pushes a shopping cart down my back alley and collects bottles out of the garbage that already adheres to your ideal lifestyle. He is really sticking it to the man!

Except he doesn’t look very happy.

By: bert

bert — Tue, 27 Oct 2009 15:44:03 +0000

A good article. Shows you to what extend, the establishment will go, to instill fear in the population so it will work untill they die. More gravy for them. Time to throw them a curve. Get out as soon as you can. Down size your life style to the point you can retire early. Quit contibuting as soon as you can. The more they can get out of you the richer they get. If their system looks like its going to blow up in their face the sooner they might give protect your pensions more than their profits. First thing is to remove all your dollars and store them under your mattress. Without you consuming they are toast. If it results in one thing, putting workers pensions at the top of the list in business failures, then it would be worth it. Its the only way you can fight them. otherwise they will keep ripping you off.