CPP expansion not the best way to save for retirement: Poll

As federal and provincial finance ministers prepare to discuss proposals for increasing mandatory Canada/Quebec Pension Plan (C/QPP) premiums this weekend, a poll finds that a vast majority of working Canadians prefer other options to help boost retirement savings.

The Angus Reid Global poll, conducted for the Canadian Federation of Independent Business (CFIB), shows that only 18% of working Canadians see C/QPP increases as one of the best ways for government to help Canadians save for retirement, well behind other choices such as tax cuts (54%), incentives (47%) and improved voluntary options to save (35%).

“Finance ministers should be asking if mandatory C/QPP hikes are a good idea, not just when is the right time to introduce them,” said CFIB president Dan Kelly. “Although governments have been talking about this for years, no one has ever stopped to ask Canadians if they support the idea.”

The poll also shows that if working Canadians are forced to pay more for C/QPP, 45% would have a reduced ability to spend on essentials such as food, rent and mortgage payments, and 42% would have a reduced ability to take advantage of other forms of savings.

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