While changes to the Canada Pension Plan (CPP) recently adopted by the current federal Liberal government offer some improvement, they do not go far enough.
The legislation includes an increase to the annual payout from 25 per cent to 33 per cent of pre-retirement earnings. In addition, the maximum amount of income covered by the CPP increases from $54,900 to about $82,700 -- once it is fully phased in. However, because the changes do not fully come into effect until 2025, most workers will not have saved enough or contributed a sufficient amount to the CPP and therefore many will be retiring in poverty.
For a government that claims its legislation is fact-based, it has clearly misread the facts.
The facts are:
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