Thoughts on BC Politics and More

IMAGE CREDIT:  Govt of Canada   A taxpayer-funded think tank is calling on cabinet to trim nearly $14 billion a year from benefits paid to retirees, arguing programs like Old Age Security are too generous for households with six-figure incomes. Generation Squeeze, a University of British Columbia group that once pushed for a national home equity tax, said pension programs should be scaled back to reflect “today’s needs.” According to Blacklock's Reporter, its budget submission to the Commons finance committee recommended a $6.9 billion reduction in age and pension tax credits and $7 billion in changes to Old Age Security ... CLICK HERE for the full story 

USED WITH PERMISSION At the beginning of this month I referenced higher Canada Pension Plan (CPP) premiums, that will increase from 4.95%, up to 5.95%, gradually between 2019 and 2023, resulting in lower take home pay for many Canadians.   If you have been watching television, it is possible that you may have even come across commercials from the CPP Investment Board that state “you started saving for retirement with your first paycheque.” I have received complaints over the fact that a true savings account is one that citizens can voluntarily withdraw from, whereas CPP contributions do not offer this flexibility.  I have also received inquiries and comments about CPP and other federal government retirement programs.   And I have heard many comments over those recent increased CPP premiums. One common complaint, is that if a person does not live to 65, or not long after, the amount that can be transferred to spouse, after a lifetime of CPP contributions, is ...