I'm 36 and I'm definitely concerned that it may not be as good as it is now. On a side note I would love if the government would come up with a program that if you never collected unemployment insurance over your working career or a percentage of your working career you could get a kick back at retirement.
I had this video saved for so long, and finally sat down to watch it! I’m really glad I did. I love that I can listen to you and easily feel confident in what you’re saying - you clearly know what you are talking about :) This answered some questions that were nagging me at the back of my mind. I wouldn’t even know where to find this information myself, this saved me so much time lol. So thank you!
Hey Marc excellent video and Information. You're a natural UA-camr. "NO", I am not worried about collecting my CPP till I'm 100. I'm currently 67.5 and have been retired for the past 7.5 years. I'm waiting until 70 to collect my Super Sized CPP pension. I turned 65 in 2019...if I had known Covid was coming I would have held off on collecting my OAS as well since I am staying at home and not travelling any more and saving 1/2 my income. Oh well 1st World problems I guess? 😃
Yup, first world problem for sure just like after completing our finically planning and looks like we will have more income retired than working and no RRSP to counter the Tax. LOL.
Awesome video Marc!!! And Yes the CPP will be there when we retire and like you said that cpp "isn't designed to replace your current salaries" I have coworkers in their 60's who never saved a penny all their life and now crying about the fact that they can't retire well sadly that's choices that we take in life. Marc it will be interesting maybe to make a follow up video to show what the CPP board actually invest in Canadian companies and US and internationally it's so interesting and out for the public and it could be a good guide for any investor that's looking for some good ideas on what to invest. Thanks again for the video !
Thanks, Rick. I'm not sure what the percentage of misinformation is out there, but it's high. Appreciate you watching and adding to the discussion. - Marc
I'll be 65 in 2 months. Watching yourvideo is good for the soul. I'm canadian, and proud that our system took care of the social net we have now. So tired of those complaining without knowing the facts. The united-staters, they corrupt everything with their idieology. Now post-trump, it'even worst. Thanks again...
Hi Alain. Thanks for your comment. I'm pretty sure a lot of the complainers didn't actually watch the video, because the video contains the facts about their misconceptions. Appreciate your support. - Marc
Thanks for a very good video. I've been drawing CPP for three years and feel that the Plan is well funded and will be there for my kids and grand kids. One thing that will change however is that the age at which you can draw a full CPP pension will need to increase perhaps to 66 or 67 as there aren't as many people of working age to support those going into retirement. This might be mitigated my higher immigration levels to increase the number of working age Canadians. Cheers!
Thanks for your comment, Dan. I sure hope it's there in 3 years!!! And hopefully, the 35 or so that you'll be drawing from it. Stay healthy and enjoy your retirement! ⛱- Marc
I will contribute CPP for like 35years of my career and I have 18 years left, I have as well Investments TFSA, RRSP, other accounts and real estate, would be a nice retirement with the pension. Thank for your video and the best information for Canadian, Cheers! Alex
Good video. I assume the CPP would not be as rosy for most Canadians if Alberta is successful in creating its own provincial pension plan, especially given that wage income in Alberta tends to be higher than in other provinces and we have a younger work force?
Yeah, you can always trust Alberta government to screw up. Just like their wealth fund and how they handled the Pandemic. Hope Alberta people are smart enough to oppose the proposal, but hey they voted for Kenny.
Interesting to see how my % of geographical diversification matches the CPP, and also how my % of fixed income and equity roughlyyyyyyyy matches the CPP. Thank goodness for asset allocation ETFs. Love these videos. -Young invester
Great insight and much needed - shame short/digestible educational bits aren't mandatory in school. I'd suggest doing a video on "Future of CPP" and how to prepare for different scenarios (i.e. varying contribution rates)
Thank you for this clear and concise assessment of our Canada pension plan. The pension plan is certainly viable and should continue supplementing Canadian pensions in the foreseeable future. I loved how you laid everything out in such an even handed manner.
Hi Marc! I'm 22 and going through the Canadian Financial planning courses right now and have learned about the CPP. I really enjoyed this video however I still have one philosophical issue with CPP. You mentioned yourself, it isn't meant to fully fund retirement, so then why is participation in the CPP MANDATORY? I am young and would much rather that the money I contribute to CPP and my employer contributes for me into the CPP just be given to me to invest. From your vid I can see the CPP is well managed and planned but I would like the control to invest myself. If they added the ability to opt out, I don't see an issue because I am ok with losing my CPP permanent prolonged disability benefit, survivor benefit, and pension if I can not contribute. I don't see the need for government to mandate that I must use their money management. I understand the incentive is to make sure that people who aren't fiscally responsible (or who plan for the future) get taken care of (food, shelter, etc) but then perhaps an option to opt out of CPP but then the equivalent contributions MUST go into a LIRA? Am I missing something or would this not fill the purpose of CPP with allowing more control of money management and transparency? Correct me if I am missing something but I am not a fan of mandatory contributory government pensions. OAS (GIS) is meant for low income people that need help. The CPP system to me just seems like an inefficient way to fix a problem. I think the ability to opt out and do the LIRA method I mentioned above would be preferable.
You are obviously young and didn’t have lots of experience with human nature. CPP is meant to replace 30-35% of working incoming to a MPE. The mandatory contribution is meant to make sure everyone is participating, managed with expertise and power of scale, providing a decent income when Canadians in their retirement. I work for a very good company providing RRSP match which meant lots of FREE money, we still have people don’t participate consider all my colleagues are making above average incomes.
I’d love to see a more realistic calculation of the comparison between what we contribute and what we will get out of CPP when it’s time to collect. Like a true comparable of what your viewer was trying to do. Let’s say for someone whose around 35-40 years old. Would be very interesting to see. Thanks for the creat video!
I made exactly the same decision about 30-40yrs ago (& continued with that mind set all along) & am now nearing retirement with a decent RRSP as a result. I am now much more confident that the CCP will still be around for my retirement, so the bonus will certainly be nice. 😁
Hey Kevin! Hope you're keeping well. We agree on this one... the benefits are a bonus, and the other funds we've set aside for ourselves will provide the 'extras' in retirement. Thanks, as always, for watching. - Marc
Thanks for the video, I’m really enjoying your sons channel and your videos as well. I’m 36, and am taking a more hands on approach to investing and your videos have given me a ton of knowledge on how to do this. I am more confident in cpp after watching this video, despite how top heavy the pyramid is getting. Thanks again!
Appreciate the informative video. Funny that this morning I checked my pay-stub and specifically noticed the $81 in CPP deductions. "Money I'll never see" I thought. Beforehand: Figured I'd never see the CPP benefits I'm currently paying into. After: I'm still on the fence. I'm one of those "civilization is collapsing!" types that doesn't have any faith in Western governments given their track record the last sixty years with regards to promoting globalism, progressivism, and promoting the mass panic surrounding climate change and coronaviruses. I'm 28 and have a very bleak outlook of the future. Alas, those issues are outside the scope of this video. It is reassuring (and surprising) to learn that the CPP has a competent and successful investment board. Wouldn't mind learning more about this. I remember reading an article about how the Alberta government has an investment arm (which infamously lost a lot of money during the March 2020 crash). Wondering if other provinces and the federal government have investment funds and if such a thing is a good or practical idea (I'm thinking it could be a way of paying down provincial/national debt).
Thanks for a great comment, Andrew. Appreciate the thought you’ve put into this. Not sure when I can work a provincial investment video in, but I will put it on the list and you never know. Thanks for watching. - Marc
Hello Marc, thank you for the great video. I remember that in the introductory video of this series, you had mentionned that for all practicalities the Quebec plan and the CPP could be considered as the same and that your analysis applied to both. Is it still the case in this video or are there technicalities about those facts that change between Quebec and the RoC? Thank you!
Thanks for the question. QPP funds are managed by the Caisse de dépôt et placement du Québec, and are reported on separately. The most recent actuarial report, also published 12/31/18, projects 50 years of sufficient t cash flow and assets to provide the current benefits. Hope that helps, and thanks for watching with such a keen eye! 👍 - Marc
Thanks for the video. I'm 25 currently, and the way I'm currently investing is run in such a way that I can retire without the CPP. If CPP is still around when I retire then its icing on the cake :) .
I'm fairly confident that the CPP will still be around when I retire(25-35 years), but planning to save/invest as though it wont just in case. Thanks Marc, this video gave me more confidence in the CPP than I had before hand.
I sure wish they would teach about the resposibility of the worker to take care of them selves in retirement during school. All they focus in on is to get a job now and not what happens after that. I'm honestly a bit late in preparing for retirement properly due to a lack of education in that manner. It should be incorporated into the ciriculum that is mandatory like Social studies or something, or Home economics maybe. I pretty confident that the government will feed me and house me if I do end up in finacial distress, but I hope to never be a burden on the system when I get to that age. I am happy today to be contributing to taking care of the elders in our communities, we owe them respect, and remember we will have to endure the trials they face in advancing age, it easy to be compasionate when you think of yourself being in a similair situation one day soon.
When I was in my 20s I said that there no way I would ever get CPP. I figured it would be gone by the time I retired. I'm now 58 and feel much better about it. I have saved quite a bit towards retirement but probably not enough without CPP, OAS or GIS
Thanks for watching and taking the time to comment. We're basically the same age, and like you, all I've heard all my life is that the fund will be bankrupt. Yes, even going back 40 years like you. I just turned 59, and I'm 100% confident the program is secure for at least our lifetimes! Unless we're planning on living to 125, which I'm not. - Marc
With regards to CPP, I think it's best not to rely on the government at all for retirement. That way you won't be disappointed or desperate when it comes time to retire. I don't trust the Federal government one little bit, and don't doubt that they would spend the money (or cut the max benefit, or not track it properly with inflation, etc) if they had the chance. Legislation be darned, when has that ever stopped them before? :P
Have you ever looked into the annual cola increase to determine if you think the cpi is being understated for the purposes of calculating annual cola? Also due to the surge in inflation in 2022, do you think the benefits should be adjusted for inflation quarterly instead of annually?
I have been in receipt of CPP-Disability since 2009. I have had and will have periods of employment in my retirement based on my capacity to rejoin the wrokforce. Before watching your video, no, I am not concerned about the stability/continuity of receiving my CPP-Disability until I die or win the lottery ;) After watching your video my views have not changed. Thank you.
Not worried but still worried for whatever reasons…collecting CPP, OAS next month, OMERS Ontario pension for seven years, investments and own house. I need to get used to spending the money and sell the house at some point. I think it is because we are programmed to save and not spend the money. It has been a physiological barrier taking the money but the clock is ticking for us all. Looking forward to travelling again and working with advisor on a new financial plan now that my wife is retiring.
Wish we have a way to contribute to a fund managed by CPP instead through financial institution, CPP is doing so well and has the brain power and scale. We will all come out better.
These max CPP rates are exploding YOY. This brings me limited comfort. I feel less secure after seeing this material. I will plan as though I will receive nothing. It's healthy to be sceptical of your government. Excellent material on this channel!
I am not worried so much about whether I will receive the money. I am worried the government will give with one hand and take more with the other. Historical returns are not sustainable, so I believe all pension funds will have serious problems in the coming years.
Thanks for sharing your thoughts. Good points on taking from one hand and giving from the other. Hopefully they can sustain the current track, although for sure there will be challenges and rough patches. - Thanks for watching. - Marc
I'm in my late 30s and I feel like I'm contributing more than what I should for what I'll get out of it but in the end that's all for the greater good so I don't necessarily see it as a negative, we learned from the past and are doing a better job at funding the plan. I can understand how people think it's not possible to live off of CPP and OAS but all of the retirees in my family are doing okay without ever having had any savings or investments on the side so it is possible but it definitely cuts back on lifestyle, but for people who don't travel and don't have major expenses it's doable. Will it still be doable in the future, that remains to be seen though and I'd be curious to see how that turns out, and I feel like that's more what the point is about, where CPP will become more and more the addition to your retirement fund (as it's meant to be) and not something that you can live on like in current years.
Before watching I think I will get CPP. I am 21 and will get it in 44 years. No government will want to take it away. It may get revamped and diminished or changed, but not eliminated. Either way, I am not preparing to receive it or an inheritance or pension from my engineering job. Best to plan for the worst and then if I get any of those 3, that is stellar!
Inflation is a danger yes. Even though the CPP is indexed, as we all know there are different measurements of inflation, and our purchasing power will also be in jeopardy. Thanks for watching, as always, and thanks for your comment. - Marc
I was surprised how much my CPP ended up being because my income was always modest. I put the claim in for the reduction of years used to calculate as was home with two children. I wonder if people are able to calculate what this amount is going to be ahead of time as I really had no idea how much my CPP was going to be until I got it.
Can you do a reaction video to the Vox miniseries, Retirement Explained? It would be good to have you explain the Canadian perspective and if the history of the US pension plans affected the direction of Canada’s system.
8-10 years away from retirement, I'll have more CPP because of the enhanced CPP. I just don't know if the e-cpp will affect my work pension after the bridge benefit @65?
But our CPP contributions also cover $ for disabled people, spousal benefits and that modest death benefit so makes sense we might contribute a bit more then we take back… we do live in a social democracy!!!
Hi Kaitlyn. That's the bottom line. CPP isn't a pure 'pension' per se, it's a broader social benefits program. Nothing can be perfect in this scenario, but hopefully they can stike the correct balance. Thanks for your logical comment. - Marc
You have to pay into the CPP all your working life and if you are self employed with net income over $3,500. While I bloody-well intend to *collect* CPP when I retire in 11 years, I plan on being financially independent and consider CPP and OAS as "bonuses".
@@jackieinnes3622 you are corect and my comment was updated. However, the self employed have the ability to write-off just about anything and everything they want for a more favourable tax position, possibly resulting in a net income below the threshold noted above.
I believe that we are all responsible for ourself when retired. CCP I see as a part of tax and never think that I will get it back, that’s why I am actively investing right now, only money in my pocket is mine.
It is a government ponzi fund with new members coming in all the time. The contribution ceiling can be raise to help at any time the government needs Yes it will be there
I don't really know what happens to my CPP if I am a temporary resident. If, for example, I go back to my home country after my permit expires, what happens then?
What concerns me is that if you die before drawing from it, the value of your lifetime contributions are kept by the government. They are not released to your estate. I understand if you are married, your spouse gets something, but not all of it, however if you are single, all the money you put in, is kept. I would prefer an option to "opt out" of the CPP and put jnto my own plan that could shared as per instructions in my will when i pass away.
I understand what you're saying, Michael. In a perfect world your idea would work... the problem I'm sure is just that the vast majority of people wouldn't invest the money properly, and it would be worse in the end. But for those responsible people, it sure would be better. Thanks for your comment. - Marc
@@FS2obscura it’s an asset to have employers be required to contribute to our retirement. And a high percentage of poor seniors could end up costing the government a lot of money. I was always told that the CPP started because not enough people were adequately saving for retirement.
Hi Madison. Huge asset that employers need to contribute on their employees' behalf. No doubt that if this plan wasn't in place a lot more people would retire in very rough financial shape. It's not perfect, but overall it helps. Thanks for watching and adding to the conversation. - Marc
Good attitude of self reliance. Unfortunately we live in a society, everybody is different. We do want to have a caring and fair society, so social safety program is important, financially and emotionally.
The premium of pension insurrance is now increased for 63k$ instead of 57k$ of salary , why is premium increased ?? Do you think UBI will replace pension funds
Yes, net worth includes both liquid and fixed assets, so your home is included. If you have a mortgage, you just deduct it from the market value of the home. - Marc
I'm 28 y/o I would say I'm about 50/50 on whether or not the CPP will be there for me. Edit: definitely feel more secure, but I still rather stay skeptical. The way I look at it is, if it's still there it will be a nice bonus.
No....I’m investing as if I will have no money from the government in my retirement years. If I do get something from the government then that will be a bonus.
Another good video, thanks. I am 55 and plan to retire from work at 65, and draw CPP at 70. (Longevity in good health is the norm in my family). I was steadily employed from teen years till present, all but about 7 or 8 years hitting the maximum. I feel fairly confident it will be around til my death. 👍
Thanks for adding to the discussion, Lissa. Quite a few people aren't counting on the government, and are putting money aside to provide for themselves, and will accept the benefits as a bonus if they are there. Not a bad strategy. Cheers. - Marc
As a self employed person I pay both the employee and the employer portion of the cpp. My family history shows that almost every male in my family has passed away before 65. Which will make my contributions wasted. I could invest and enjoy the money instead of giving it to the government for 47 working years(42 if I collect at 60). The expenses that come with a corporation exceed what I currently pay in taxes or so I’ve been told by multiple accountants. Which is why I think you should be able to opt out of cpp if you are able to take control of your own investments. It seems like it will be a waste for me.
Thanks for your comment and input. A lot of people share your thoughts, and they have merit. For many, taking control of the money yourself would be better. For others, it would be abject failure. I guess the CPP program is trying to find the balance, and for sure, it can hurt those who are more disciplined. Thanks for watching. - Marc
@@beaviswealth well said. For those who are willing to learn, taking control can be a good thing. Keep the videos coming, I watch all of them. I enjoy getting as much information as I can. You guys make a great team. It would be awesome to get a video or two on how you evaluate companies. What helps you determine a good investment.
17:30 incorrect. The total cost of labor makes no difference to the employer whether they are paying CPP or they're paying you. Your salary would be exactly that much higher without CPP. Basic economics. CRA obviously also obviously recognizes this because as a self-employed individually you pay all of it.
I read your comment and rewatched that segment. What I said was correct. I wasn't talking about the 'cost of labour', I was talking about how much the employee contributes to the program. I also mentioned that the employer matches the contribution. You're saying that if the program ended today employers would just bump up every employee's income by the CPP amount? In what world do you see that happening?
I hope by the time I hit 60 I would be donating my CPP if I need it. but the most important thing to know is "does any body know when he/ she will die" no one knows when.
Should do a video comparing cpp benefits to a return if there was none. My bet is taking that 6300.00 and investing every year yourself you would be way better off when hitting 65 than the 1200.00 or whatever they give you per month. 45 years investing 6300.00/year... wew.
I think it will still be there (32 now) but I think its reasonable to think it might be a loss these than current levels. Either way, I'm not counting on that for my retirement planning. If I get something, awesome, if not, I don't expect it to be a big deal.
If only it were that simple. 🙂First off, the CPPIG has access to investments the average investor doesn't. And, of course, the numbers quoted are average compound numbers, not every year. Best of luck! - Marc
Pension funds is not a pension plan and should only invest in gov. Bonds and treasury but coz gov reduce rates to almost 0%… CPP is now forced to invest in risky assets to get at least 4% annual return
Would have liked your input on employer CPP contributions... I find there is zero benefit to companies. It's not like companies get paid CPP pension... Also, of the employee dies, the employer doesn't get any of those contributions back.
I am in an interesting position. I have retired with a 32 year pension at 52. I will be penalized as far as i know when i go to collect for the last 8 years of not contributing. I have put in the max amount since 1988. Should i pay as a self employed contributor for the next couple of years to make up for not paying the last few? I could earn some income from a side hustle if it would help me.
I just love listening to your dad! He is so clear and polite plus has a wealth of knowledge!! ❤️ thank you!!
Thank you so much for all the details and facts you put into this video about how our CPP works.
You're welcome, Vanessa. Thanks for watching. - Marc
I'm 36 and I'm definitely concerned that it may not be as good as it is now. On a side note I would love if the government would come up with a program that if you never collected unemployment insurance over your working career or a percentage of your working career you could get a kick back at retirement.
I had this video saved for so long, and finally sat down to watch it! I’m really glad I did. I love that I can listen to you and easily feel confident in what you’re saying - you clearly know what you are talking about :) This answered some questions that were nagging me at the back of my mind. I wouldn’t even know where to find this information myself, this saved me so much time lol. So thank you!
Awesome! Thanks for watching, and I glad this made its way from the saved file, to the watched file! - Marc
Very influential and some what a direct answers to ‘ how much need to retire’. Thank you .
Liking this series Marc. Very informative and you have a way of making somewhat complex topics simple to understand. Thanks!
Hey Marc excellent video and Information. You're a natural UA-camr. "NO", I am not worried about collecting my CPP till I'm 100. I'm currently 67.5 and have been retired for the past 7.5 years. I'm waiting until 70 to collect my Super Sized CPP pension. I turned 65 in 2019...if I had known Covid was coming I would have held off on collecting my OAS as well since I am staying at home and not travelling any more and saving 1/2 my income. Oh well 1st World problems I guess? 😃
Thanks for sharing your story, and for supporting our channel! Much appreciated. - Marc
Yup, first world problem for sure just like after completing our finically planning and looks like we will have more income retired than working and no RRSP to counter the Tax. LOL.
Thank you for this information. Before I listened, I was sure that I could not count on CPP. Now, I feel much more reassured.
Glad it was helpful! Thanks for watching. - Marc
Thank you, Marc. Very useful video. We really appreciate you doing videos like these giving Canadians FACTS!
Thanks, and as always, we appreciate your support. - Marc
Awesome video Marc!!! And Yes the CPP will be there when we retire and like you said that cpp "isn't designed to replace your current salaries" I have coworkers in their 60's who never saved a penny all their life and now crying about the fact that they can't retire well sadly that's choices that we take in life.
Marc it will be interesting maybe to make a follow up video to show what the CPP board actually invest in Canadian companies and US and internationally it's so interesting and out for the public and it could be a good guide for any investor that's looking for some good ideas on what to invest.
Thanks again for the video !
Thanks for your suggestion, Gus. I'll add that to my possible 'future video' list. - Marc
Happy Canada Day everyone.
Thank you for clearing that up. In this time of information miscommunication.
Thanks, Rick. I'm not sure what the percentage of misinformation is out there, but it's high. Appreciate you watching and adding to the discussion. - Marc
Really appreciate your honesty and courage to share truths.
I have recently gotten interested in Retirement and savings, thanks for these videos they are fantastic!
Thank you, and I'm glad you're finding value. - Marc
I'll be 65 in 2 months. Watching yourvideo is good for the soul. I'm canadian, and proud that our system took care of the social net we have now. So tired of those complaining without knowing the facts. The united-staters, they corrupt everything with their idieology. Now post-trump, it'even worst. Thanks again...
Hi Alain. Thanks for your comment. I'm pretty sure a lot of the complainers didn't actually watch the video, because the video contains the facts about their misconceptions. Appreciate your support. - Marc
excellent, as always, Mark. I am not sure if there is already a video on the topic of when to take CPP, early at 60 or later?
Thanks for a very good video. I've been drawing CPP for three years and feel that the Plan is well funded and will be there for my kids and grand kids. One thing that will change however is that the age at which you can draw a full CPP pension will need to increase perhaps to 66 or 67 as there aren't as many people of working age to support those going into retirement. This might be mitigated my higher immigration levels to increase the number of working age Canadians. Cheers!
I feel that the plan will be there for me when I turn 60 in three years.
Thanks for your comment, Dan. I sure hope it's there in 3 years!!! And hopefully, the 35 or so that you'll be drawing from it. Stay healthy and enjoy your retirement! ⛱- Marc
I will contribute CPP for like 35years of my career and I have 18 years left, I have as well Investments TFSA, RRSP, other accounts and real estate, would be a nice retirement with the pension. Thank for your video and the best information for Canadian, Cheers! Alex
Good video. I assume the CPP would not be as rosy for most Canadians if Alberta is successful in creating its own provincial pension plan, especially given that wage income in Alberta tends to be higher than in other provinces and we have a younger work force?
Yeah, you can always trust Alberta government to screw up. Just like their wealth fund and how they handled the Pandemic. Hope Alberta people are smart enough to oppose the proposal, but hey they voted for Kenny.
CPP will be there for me because it is now run by the CPP investment board and rates have increased
Agreed. - Marc
I feel better after watching your video that the CPP plan will still be around when I retire in 10-15yr. Another great video, thank-you!
Interesting to see how my % of geographical diversification matches the CPP, and also how my % of fixed income and equity roughlyyyyyyyy matches the CPP. Thank goodness for asset allocation ETFs. Love these videos. -Young invester
Very informative. Thanks for clearing a lot of things up.
Glad it was helpful, Lee - Marc
Great insight and much needed - shame short/digestible educational bits aren't mandatory in school. I'd suggest doing a video on "Future of CPP" and how to prepare for different scenarios (i.e. varying contribution rates)
Great suggestion! I'll add that to the list. - Marc
Thank you for this clear and concise assessment of our Canada pension plan. The pension plan is certainly viable and should continue supplementing Canadian pensions in the foreseeable future. I loved how you laid everything out in such an even handed manner.
Thank you so much. I really appreciate Canadian content on the subject!
Glad you enjoy it, and thanks for taking the time to comment. - Marc
Hi Marc! I'm 22 and going through the Canadian Financial planning courses right now and have learned about the CPP. I really enjoyed this video however I still have one philosophical issue with CPP. You mentioned yourself, it isn't meant to fully fund retirement, so then why is participation in the CPP MANDATORY? I am young and would much rather that the money I contribute to CPP and my employer contributes for me into the CPP just be given to me to invest. From your vid I can see the CPP is well managed and planned but I would like the control to invest myself. If they added the ability to opt out, I don't see an issue because I am ok with losing my CPP permanent prolonged disability benefit, survivor benefit, and pension if I can not contribute. I don't see the need for government to mandate that I must use their money management. I understand the incentive is to make sure that people who aren't fiscally responsible (or who plan for the future) get taken care of (food, shelter, etc) but then perhaps an option to opt out of CPP but then the equivalent contributions MUST go into a LIRA? Am I missing something or would this not fill the purpose of CPP with allowing more control of money management and transparency? Correct me if I am missing something but I am not a fan of mandatory contributory government pensions. OAS (GIS) is meant for low income people that need help. The CPP system to me just seems like an inefficient way to fix a problem. I think the ability to opt out and do the LIRA method I mentioned above would be preferable.
You are obviously young and didn’t have lots of experience with human nature. CPP is meant to replace 30-35% of working incoming to a MPE. The mandatory contribution is meant to make sure everyone is participating, managed with expertise and power of scale, providing a decent income when Canadians in their retirement. I work for a very good company providing RRSP match which meant lots of FREE money, we still have people don’t participate consider all my colleagues are making above average incomes.
Great video. Tell us more about retirement investing strategies and expected retirement expenses.
Appropriate video for Canada Day
I’d love to see a more realistic calculation of the comparison between what we contribute and what we will get out of CPP when it’s time to collect. Like a true comparable of what your viewer was trying to do. Let’s say for someone whose around 35-40 years old. Would be very interesting to see. Thanks for the creat video!
very educative, lots of info, thanks. I am Canadian living in Europe so when we go back to Canada i wont count on CPP as i haven`t contributed much !
I’m planning my retirement as though I’m not getting CCP and if it’s still around it will be a bonus.
I made exactly the same decision about 30-40yrs ago (& continued with that mind set all along) & am now nearing retirement with a decent RRSP as a result. I am now much more confident that the CCP will still be around for my retirement, so the bonus will certainly be nice. 😁
Smart. The CPP is false reporting. This vid is pure propaganda.
I appreciate you adding to the discussion, although I'm not sure why you feel the video is pure propaganda? What motive would I have for that? - Marc
Hey Kevin! Hope you're keeping well. We agree on this one... the benefits are a bonus, and the other funds we've set aside for ourselves will provide the 'extras' in retirement. Thanks, as always, for watching. - Marc
@@kevinhallman4286 I made the same decision, the outcome though is I will pay more tax in retirement than working, damn.
Thanks for the video, I’m really enjoying your sons channel and your videos as well. I’m 36, and am taking a more hands on approach to investing and your videos have given me a ton of knowledge on how to do this. I am more confident in cpp after watching this video, despite how top heavy the pyramid is getting. Thanks again!
Thanks for sharing, Joseph. Glad you're taking info away from our videos and that they are helping. We appreciate you watching! - Marc
Appreciate the informative video. Funny that this morning I checked my pay-stub and specifically noticed the $81 in CPP deductions. "Money I'll never see" I thought.
Beforehand: Figured I'd never see the CPP benefits I'm currently paying into.
After: I'm still on the fence. I'm one of those "civilization is collapsing!" types that doesn't have any faith in Western governments given their track record the last sixty years with regards to promoting globalism, progressivism, and promoting the mass panic surrounding climate change and coronaviruses. I'm 28 and have a very bleak outlook of the future. Alas, those issues are outside the scope of this video.
It is reassuring (and surprising) to learn that the CPP has a competent and successful investment board. Wouldn't mind learning more about this. I remember reading an article about how the Alberta government has an investment arm (which infamously lost a lot of money during the March 2020 crash). Wondering if other provinces and the federal government have investment funds and if such a thing is a good or practical idea (I'm thinking it could be a way of paying down provincial/national debt).
Thanks for a great comment, Andrew. Appreciate the thought you’ve put into this. Not sure when I can work a provincial investment video in, but I will put it on the list and you never know. Thanks for watching. - Marc
Hello Marc, thank you for the great video. I remember that in the introductory video of this series, you had mentionned that for all practicalities the Quebec plan and the CPP could be considered as the same and that your analysis applied to both. Is it still the case in this video or are there technicalities about those facts that change between Quebec and the RoC? Thank you!
Thanks for the question. QPP funds are managed by the Caisse de dépôt et placement du Québec, and are reported on separately. The most recent actuarial report, also published 12/31/18, projects 50 years of sufficient t cash flow and assets to provide the current benefits. Hope that helps, and thanks for watching with such a keen eye! 👍 - Marc
Thanks for the video. I'm 25 currently, and the way I'm currently investing is run in such a way that I can retire without the CPP. If CPP is still around when I retire then its icing on the cake :) .
I'm fairly confident that the CPP will still be around when I retire(25-35 years), but planning to save/invest as though it wont just in case. Thanks Marc, this video gave me more confidence in the CPP than I had before hand.
I sure wish they would teach about the resposibility of the worker to take care of them selves in retirement during school. All they focus in on is to get a job now and not what happens after that. I'm honestly a bit late in preparing for retirement properly due to a lack of education in that manner. It should be incorporated into the ciriculum that is mandatory like Social studies or something, or Home economics maybe. I pretty confident that the government will feed me and house me if I do end up in finacial distress, but I hope to never be a burden on the system when I get to that age. I am happy today to be contributing to taking care of the elders in our communities, we owe them respect, and remember we will have to endure the trials they face in advancing age, it easy to be compasionate when you think of yourself being in a similair situation one day soon.
When I was in my 20s I said that there no way I would ever get CPP. I figured it would be gone by the time I retired. I'm now 58 and feel much better about it. I have saved quite a bit towards retirement but probably not enough without CPP, OAS or GIS
Thanks for watching and taking the time to comment. We're basically the same age, and like you, all I've heard all my life is that the fund will be bankrupt. Yes, even going back 40 years like you. I just turned 59, and I'm 100% confident the program is secure for at least our lifetimes! Unless we're planning on living to 125, which I'm not. - Marc
Fantastic video!
Thank you very much, Daniel. Cheers. - Marc
Great information! Do you think OAP is safe as well?
Appreciate detailed analysis.. deserve more views.keep growing
Thanks a ton, Techii. Appreciate your support. - Marc
@@beaviswealth I’m so grateful and blessed with the info- marc(mentor)
With regards to CPP, I think it's best not to rely on the government at all for retirement. That way you won't be disappointed or desperate when it comes time to retire. I don't trust the Federal government one little bit, and don't doubt that they would spend the money (or cut the max benefit, or not track it properly with inflation, etc) if they had the chance. Legislation be darned, when has that ever stopped them before? :P
I have been retired for almost 20 years and even though I do not get maximum benefits, I have plenty of money to live on. Answer the CPP will survive.
great video marc! thanks for the input. ill keep it in mind when managing my money. cant wait for the next one
Thanks for your comment! Cheers. - Marc
Have you ever looked into the annual cola increase to determine if you think the cpi is being understated for the purposes of calculating annual cola? Also due to the surge in inflation in 2022, do you think the benefits should be adjusted for inflation quarterly instead of annually?
I'm investing on my own as to not rely on it, but I'm fully confident that in 30 years the plan will still be there for those who need it
I think like you do. Plan for yourself, but I do believe the program will be ok. Thanks for watching. - Marc
Love this channel
Thank you very much. - Marv
I have been in receipt of CPP-Disability since 2009. I have had and will have periods of employment in my retirement based on my capacity to rejoin the wrokforce. Before watching your video, no, I am not concerned about the stability/continuity of receiving my CPP-Disability until I die or win the lottery ;) After watching your video my views have not changed. Thank you.
Thanks for sharing your story, Timothy, and all the best going forward. - Marc
Your CPP disability will switch over to CPP retirement benefits at age 65
Great insight, I heard these same things growing up, good to know they're fiction for the most part.
Thanks for your comment, Adrian. Same here.. it's always been the doomsday scenario, but I don't think it will be that bad. - Marc
@@beaviswealth Precisely, if you're doing everything else right...then funding from CPP should be the least of your worries.
Not worried but still worried for whatever reasons…collecting CPP, OAS next month, OMERS Ontario pension for seven years, investments and own house. I need to get used to spending the money and sell the house at some point. I think it is because we are programmed to save and not spend the money. It has been a physiological barrier taking the money but the clock is ticking for us all. Looking forward to travelling again and working with advisor on a new financial plan now that my wife is retiring.
Wish we have a way to contribute to a fund managed by CPP instead through financial institution, CPP is doing so well and has the brain power and scale. We will all come out better.
These max CPP rates are exploding YOY. This brings me limited comfort. I feel less secure after seeing this material. I will plan as though I will receive nothing. It's healthy to be sceptical of your government. Excellent material on this channel!
I am not worried so much about whether I will receive the money. I am worried the government will give with one hand and take more with the other. Historical returns are not sustainable, so I believe all pension funds will have serious problems in the coming years.
Thanks for sharing your thoughts. Good points on taking from one hand and giving from the other. Hopefully they can sustain the current track, although for sure there will be challenges and rough patches. - Thanks for watching. - Marc
I'm in my late 30s and I feel like I'm contributing more than what I should for what I'll get out of it but in the end that's all for the greater good so I don't necessarily see it as a negative, we learned from the past and are doing a better job at funding the plan. I can understand how people think it's not possible to live off of CPP and OAS but all of the retirees in my family are doing okay without ever having had any savings or investments on the side so it is possible but it definitely cuts back on lifestyle, but for people who don't travel and don't have major expenses it's doable. Will it still be doable in the future, that remains to be seen though and I'd be curious to see how that turns out, and I feel like that's more what the point is about, where CPP will become more and more the addition to your retirement fund (as it's meant to be) and not something that you can live on like in current years.
Contributing more than you should doesn't exist ;)
I worry about not getting the benefits through retirement. I'm 50 now and will retire in 10 years. Hoping this video reassures me!
Before watching I think I will get CPP. I am 21 and will get it in 44 years. No government will want to take it away. It may get revamped and diminished or changed, but not eliminated. Either way, I am not preparing to receive it or an inheritance or pension from my engineering job. Best to plan for the worst and then if I get any of those 3, that is stellar!
I am 68 and I get CPP and OAS. I was surprised how good the amount was when I started. My worry is that CPP will not keep up with inflation.
Inflation is a danger yes. Even though the CPP is indexed, as we all know there are different measurements of inflation, and our purchasing power will also be in jeopardy. Thanks for watching, as always, and thanks for your comment. - Marc
I was surprised how much my CPP ended up being because my income was always modest. I put the claim in for the reduction of years used to calculate as was home with two children. I wonder if people are able to calculate what this amount is going to be ahead of time as I really had no idea how much my CPP was going to be until I got it.
I am trying to learn and invest in my tfsa. Want to move over rif in kind to tfsa yearly also
Appreciate your videos. 41 and planning for my retirement
Can you do a reaction video to the Vox miniseries, Retirement Explained? It would be good to have you explain the Canadian perspective and if the history of the US pension plans affected the direction of Canada’s system.
How is CPP adjusted for inflation or cost of living increasing?
8-10 years away from retirement, I'll have more CPP because of the enhanced CPP. I just don't know if the e-cpp will affect my work pension after the bridge benefit @65?
Don’t think so, maybe your OAS will be effected if your income will be 75k+. Good problem to have though.
The plan is safe and well run.
Thanks for watching, Perry. - Marc
time to mandate schools to educate students about the fact that they are expected to invest throughout their life.
Yes. - Marc
But our CPP contributions also cover $ for disabled people, spousal benefits and that modest death benefit so makes sense we might contribute a bit more then we take back… we do live in a social democracy!!!
Hi Kaitlyn. That's the bottom line. CPP isn't a pure 'pension' per se, it's a broader social benefits program. Nothing can be perfect in this scenario, but hopefully they can stike the correct balance. Thanks for your logical comment. - Marc
@@beaviswealth agreed!
You have to pay into the CPP all your working life and if you are self employed with net income over $3,500. While I bloody-well intend to *collect* CPP when I retire in 11 years, I plan on being financially independent and consider CPP and OAS as "bonuses".
I like looking at these benefits as a bonus too, for those who put other money aside. Thanks for commenting, Andrew. - Marc
You also pay into CPP when you are self employed
@@jackieinnes3622 you are corect and my comment was updated. However, the self employed have the ability to write-off just about anything and everything they want for a more favourable tax position, possibly resulting in a net income below the threshold noted above.
I believe that we are all responsible for ourself when retired. CCP I see as a part of tax and never think that I will get it back, that’s why I am actively investing right now, only money in my pocket is mine.
Such a mistrust mentality, although I praise your willingness for self sufficiency.
Great videos
Glad you like them, Jackie. Thanks for watching. - Marc
Do you think that out of control inflation will impact rate of return of pension funds ?
What is the best way of making money through investing please!
It is a government ponzi fund with new members coming in all the time.
The contribution ceiling can be raise to help at any time the government needs
Yes it will be there
Thanks for sharing your thoughts, David. Cheers. - Marc
I am 60 and expect to collect from the CPP. I remember hearing back in the 80's that the CPP would be bankrupt by 2000.
Me too! As long as I can remember, the system has been on the verge of disappearing. So far, so good. Thanks for watching. - Marc
I don't really know what happens to my CPP if I am a temporary resident. If, for example, I go back to my home country after my permit expires, what happens then?
What concerns me is that if you die before drawing from it, the value of your lifetime contributions are kept by the government. They are not released to your estate. I understand if you are married, your spouse gets something, but not all of it, however if you are single, all the money you put in, is kept. I would prefer an option to "opt out" of the CPP and put jnto my own plan that could shared as per instructions in my will when i pass away.
I understand what you're saying, Michael. In a perfect world your idea would work... the problem I'm sure is just that the vast majority of people wouldn't invest the money properly, and it would be worse in the end. But for those responsible people, it sure would be better. Thanks for your comment. - Marc
@@beaviswealth it shouldn’t matter if the government thinks we are a bunch of idiots. It’s our money. We should have a say.
@@FS2obscura it’s an asset to have employers be required to contribute to our retirement. And a high percentage of poor seniors could end up costing the government a lot of money. I was always told that the CPP started because not enough people were adequately saving for retirement.
Hi Madison. Huge asset that employers need to contribute on their employees' behalf. No doubt that if this plan wasn't in place a lot more people would retire in very rough financial shape. It's not perfect, but overall it helps. Thanks for watching and adding to the conversation. - Marc
I'm 24 and I'd rather have the CPP supporting me be the exception, not the rule. I'd rather be self sufficient with money I earn after taxes.
Good attitude of self reliance. Unfortunately we live in a society, everybody is different. We do want to have a caring and fair society, so social safety program is important, financially and emotionally.
The plan will be around a long time after I am gone
Thanks for your comment, Tom. We're on the same page. - Marc
The premium of pension insurrance is now increased for 63k$ instead of 57k$ of salary , why is premium increased ?? Do you think UBI will replace pension funds
Does net worth include home equity of a fully paid mortgage? Thankyou
Yes, net worth includes both liquid and fixed assets, so your home is included. If you have a mortgage, you just deduct it from the market value of the home. - Marc
I'm 28 y/o I would say I'm about 50/50 on whether or not the CPP will be there for me.
Edit: definitely feel more secure, but I still rather stay skeptical. The way I look at it is, if it's still there it will be a nice bonus.
No....I’m investing as if I will have no money from the government in my retirement years. If I do get something from the government then that will be a bonus.
Agreed... hope for the best, plan for the worst! - Marc
Another good video, thanks. I am 55 and plan to retire from work at 65, and draw CPP at 70. (Longevity in good health is the norm in my family). I was steadily employed from teen years till present, all but about 7 or 8 years hitting the maximum. I feel fairly confident it will be around til my death. 👍
I’m not counting on the government.
Smart person.
Unless you're a public servant, I wouldn't either.
Thanks for adding to the discussion, Lissa. Quite a few people aren't counting on the government, and are putting money aside to provide for themselves, and will accept the benefits as a bonus if they are there. Not a bad strategy. Cheers. - Marc
I'm 58 and since the premiums went up in 2022, I think it's adequately funded. I plan on taking it early at 60
All the best, Brent. - Marc
I think it will be there when I retire. I am 41 currently and hope to see an increase in payout as inflation increases current salaries do not as fast
This was surprising to me. Good baseline start that will enhance my own investments…
Thanks for watching, Doug. - Marc
Yes I am worried that there won’t be enough CPP
As a self employed person I pay both the employee and the employer portion of the cpp. My family history shows that almost every male in my family has passed away before 65. Which will make my contributions wasted. I could invest and enjoy the money instead of giving it to the government for 47 working years(42 if I collect at 60). The expenses that come with a corporation exceed what I currently pay in taxes or so I’ve been told by multiple accountants. Which is why I think you should be able to opt out of cpp if you are able to take control of your own investments. It seems like it will be a waste for me.
Thanks for your comment and input. A lot of people share your thoughts, and they have merit. For many, taking control of the money yourself would be better. For others, it would be abject failure. I guess the CPP program is trying to find the balance, and for sure, it can hurt those who are more disciplined. Thanks for watching. - Marc
@@beaviswealth well said. For those who are willing to learn, taking control can be a good thing. Keep the videos coming, I watch all of them. I enjoy getting as much information as I can. You guys make a great team. It would be awesome to get a video or two on how you evaluate companies. What helps you determine a good investment.
17:30 incorrect. The total cost of labor makes no difference to the employer whether they are paying CPP or they're paying you. Your salary would be exactly that much higher without CPP. Basic economics.
CRA obviously also obviously recognizes this because as a self-employed individually you pay all of it.
I read your comment and rewatched that segment. What I said was correct. I wasn't talking about the 'cost of labour', I was talking about how much the employee contributes to the program. I also mentioned that the employer matches the contribution. You're saying that if the program ended today employers would just bump up every employee's income by the CPP amount? In what world do you see that happening?
I think they will pay ccp… plus I think they will index it as well… maybe it will fo up to 35% with any luck 😁…. super video like usual….
Thanks for watching, Robert! - Marc
I hope by the time I hit 60 I would be donating my CPP if I need it. but the most important thing to know is "does any body know when he/ she will die" no one knows when.
I am not booking the cpp into my retirement plans at all. If I get anything from it I will see it as a bonus
Should do a video comparing cpp benefits to a return if there was none. My bet is taking that 6300.00 and investing every year yourself you would be way better off when hitting 65 than the 1200.00 or whatever they give you per month. 45 years investing 6300.00/year... wew.
I think it will still be there (32 now) but I think its reasonable to think it might be a loss these than current levels. Either way, I'm not counting on that for my retirement planning. If I get something, awesome, if not, I don't expect it to be a big deal.
Not scared of loosing the CPP, incredible management.
so if i copy paste the stocks held in CPP I can make 11% a year?
If only it were that simple. 🙂First off, the CPPIG has access to investments the average investor doesn't. And, of course, the numbers quoted are average compound numbers, not every year. Best of luck! - Marc
Pension funds is not a pension plan and should only invest in gov. Bonds and treasury but coz gov reduce rates to almost 0%… CPP is now forced to invest in risky assets to get at least 4% annual return
Would have liked your input on employer CPP contributions... I find there is zero benefit to companies. It's not like companies get paid CPP pension... Also, of the employee dies, the employer doesn't get any of those contributions back.
It’s the benefit of helping their employees to have a safety net when they retire. Just like good companies provide pensions( DB or DC).
So when CPP started in 1966. People who never paid into CPP got CPP?
I am in an interesting position. I have retired with a 32 year pension at 52. I will be penalized as far as i know when i go to collect for the last 8 years of not contributing. I have put in the max amount since 1988. Should i pay as a self employed contributor for the next couple of years to make up for not paying the last few? I could earn some income from a side hustle if it would help me.