Off_The_Schneid! Posted July 16, 2015 Share Posted July 16, 2015 I've started this forum because I'm a little surprised that there isn't more backlash from people about CPP (Canadian pension plan) I however don't have all the facts So I will withhold my outrage until a few more facts and insite are brought forward It's my understanding that you pay into cpp every year ( until you've reached your max ) which takes awhile Now here's where I need clarification You pay into it every year, how much interest do you yourself accumulate?and how much does the government accumulate off of it? I'm assuming that the government makes a ton of interest off of everybody's cpp contribution so that's one thing And then there's the fact that if you don't live until 65 all the money you have contributed over the years and interest is forfeited back to the government except for one small lump sum payment for funeral expenses I used to know the number so I will wing out the $10,000 as I think it's pretty close So I'm under the impression that A) the government continues to make money off the interest from every single person taken off there pay checks if there is a death before 65 all that money is gone for some reason except for a small lump sum which is prob taxable Just a little surprised there isn't more backlash with how our hard earned money is just taken away from us Link to comment Share on other sites More sharing options...
No_More_Larchide Posted July 16, 2015 Share Posted July 16, 2015 http://www.servicecanada.gc.ca/eng/services/pensions/cpp/index.shtml?utm_source=vanity+URL&utm_medium=print+publication,+ISPB-185,+ISPB-341&utm_term=/CPP&utm_content=Mar+2013,+eng&utm_campaign=OAS+Pension+2013,+Benefits+for+Low+Income+Seniors Link to comment Share on other sites More sharing options...
Off_The_Schneid! Posted July 16, 2015 Author Share Posted July 16, 2015 That web site didn't answer any questions but thanks Link to comment Share on other sites More sharing options...
Chicken. Posted July 16, 2015 Share Posted July 16, 2015 good thread.. i'll wait for someone more knowledgeable to fill in the gaps Link to comment Share on other sites More sharing options...
Offensive Threat Posted July 17, 2015 Share Posted July 17, 2015 All interest stays within the plan. The Gov has no authority to take any funds out of the plan for any reason. The fund size is increasing ahead of projected expenses and will continue to increase ahead of demand so there will be no "the CPP will be broke by the time we need it" BS . If you would like information on how the plan allocates its investments and how much it has in investments that information is here in the CPP annual actuarial reports :http://www.osfi-bsif.gc.ca/Eng/Docs/cpp26.pdf The plan is very well managed and will not run out of funds in any living Canadian persons lifetime (barring some form of massive longevity increase, which I expect is more likely than not over the coming decades) The plan runs in tandem with Old Age Security. Old Age Security is indexed to the Canadian Consumer Price Index and adjusted to match 4 times per year so that plan stays steady with inflation as well. If you want a active lifestyle with travel and fun in your retirement you will need to save more funds than what the plans will pay but they will provide a fair chunk of change. Link to comment Share on other sites More sharing options...
Off_The_Schneid! Posted July 17, 2015 Author Share Posted July 17, 2015 All interest stays within the plan. The Gov has no authority to take any funds out of the plan for any reason. The fund size is increasing ahead of projected expenses and will continue to increase ahead of demand so there will be no "the CPP will be broke by the time we need it" BS . If you would like information on how the plan allocates its investments and how much it has in investments that information is here in the CPP annual actuarial reports :http://www.osfi-bsif.gc.ca/Eng/Docs/cpp26.pdf The plan is very well managed and will not run out of funds in any living Canadian persons lifetime (barring some form of massive longevity increase, which I expect is more likely than not over the coming decades) The plan runs in tandem with Old Age Security. Old Age Security is indexed to the Canadian Consumer Price Index and adjusted to match 4 times per year so that plan stays steady with inflation as well. If you want a active lifestyle with travel and fun in your retirement you will need to save more funds than what the plans will pay but they will provide a fair chunk of change. I personally don't pay into cpp because I think it's a scam I'm just a little surprised more people don't feel the same Die before 65 and most of your contributed money vanishes Link to comment Share on other sites More sharing options...
Offensive Threat Posted July 17, 2015 Share Posted July 17, 2015 I personally don't pay into cpp because I think it's a scam I'm just a little surprised more people don't feel the same Die before 65 and most of your contributed money vanishes If dying before retirement is your game plan then that makes sense. Link to comment Share on other sites More sharing options...
Off_The_Schneid! Posted July 17, 2015 Author Share Posted July 17, 2015 If dying before retirement is your game plan then that makes sense. If you were to put the same amount of money into rrsp as you would cpp it would be in your control Your gaining interest as well as a tax write off It's your money if you pass away Cpp your just blindly giving your money away Link to comment Share on other sites More sharing options...
Offensive Threat Posted July 18, 2015 Share Posted July 18, 2015 Cpp your just blindly giving your money away All of the information about the Canada Pension Plan: what it is, how it is implemented and the laws protecting it are publicly available. The information is there. Theres a difference between willful ignorance and blindness. Link to comment Share on other sites More sharing options...
-SN- Posted July 18, 2015 Share Posted July 18, 2015 I personally don't pay into cpp because I think it's a scam I'm just a little surprised more people don't feel the same Die before 65 and most of your contributed money vanishes Congrats? I hope you die before 65? I don't really know what you're looking for here. Link to comment Share on other sites More sharing options...
The Arrogant Worms Posted July 18, 2015 Share Posted July 18, 2015 I personally don't pay into cpp because I think it's a scam I'm just a little surprised more people don't feel the same Die before 65 and most of your contributed money vanishes Interesting...what do you do as there very few ways not to pay in to it. Link to comment Share on other sites More sharing options...
Grapefruits Posted July 18, 2015 Share Posted July 18, 2015 I personally don't pay into cpp because I think it's a scam I'm just a little surprised more people don't feel the same Die before 65 and most of your contributed money vanishes So you work under the table? CPP is mandatory as far as I know. I've been told since I was a kid that CPP wouldn't be there for me when I retire. If it was up to me I'd stop paying into CPP. Link to comment Share on other sites More sharing options...
John Tortorella Posted July 19, 2015 Share Posted July 19, 2015 I personally don't pay into cpp because I think it's a scam I'm just a little surprised more people don't feel the same Die before 65 and most of your contributed money vanishes Why do you live in canada. The whole country is a scam to you. Gfto please Why pay health care i dont get hurt Why pay for transit i drive Why pay fo fire fighters my house isn't on fire. America is 1 degree below the 49. Enjoy your hell. Link to comment Share on other sites More sharing options...
Grapefruits Posted July 19, 2015 Share Posted July 19, 2015 Why do you live in canada. The whole country is a scam to you. Gfto please Why pay health care i dont get hurt Why pay for transit i drive Why pay fo fire fighters my house isn't on fire. America is 1 degree below the 49. Enjoy your hell. That's a rather large overreaction. Lets face it, CPP is pretty much a scam. We pay into something that we will never fully see. It's about time we are given other options besides CPP. Personally, I'd rather take my CPP contributions and throw them into my companies pension plan. They match a percentage of it and I have some control over how it is invested. With CPP we do not. Link to comment Share on other sites More sharing options...
surtur Posted July 19, 2015 Share Posted July 19, 2015 That's a rather large overreaction. Lets face it, CPP is pretty much a scam. We pay into something that we will never fully see. It's about time we are given other options besides CPP. Personally, I'd rather take my CPP contributions and throw them into my companies pension plan. They match a percentage of it and I have some control over how it is invested. With CPP we do not.my company is the same I would rather all that cpp payments go onto that instead. As of now my pension payments to my companies pp are about 15% of my cpp payments yet would payout much much more if they were equal. I just can't afford to payout that much money each pay check. Link to comment Share on other sites More sharing options...
Offensive Threat Posted July 19, 2015 Share Posted July 19, 2015 I've been told since I was a kid that CPP wouldn't be there for me when I retire. If it was up to me I'd stop paying into CPP. That was told to you by people who have no idea what CPP is and how it is administered. It will be there in 20 years, it will be there in 50 years. The CPP administers an investment fund of about $190 billion Canadian Dollars that is growing at a much faster rate than it is paying out. This is expected to continue for the next 15 years or so then it will grow at a more moderate pace but still outpace inflation. Yes, If I had a choice I would rather lump my CPP contributions into my other investments as they will increase at a faster rate but most people who say they would rather stop paying into CPP and do this would be lying and would instead just spend that money and never build up a reasonable amount of savings. Unfortunately thats human nature. The Gov is as aware of this as anyone so they force you to save. Their investment strategy is very heavily on the side of slow steady growth over bigger returns with bigger risks. Being the Gov they also are heavily in favor of Canadian based investments. This approach limits the returns the fund can receive but it still is growing at a steady pace. Link to comment Share on other sites More sharing options...
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