CPP – Case studies in retirement
What doubling the CPP would mean for people's real lives
Doubling CPP benefits is affordable now. For someone in Ontario earning $30,000 annually, future CPP benefits can be doubled for an extra $1.86/week (7½ Timbits®) each year over seven years. For someone in Alberta earning $50,000 a year, the cost would be 12½ Timbits®/week.
[[{“fid”:”863″,”view_mode”:”default”,”fields”:{“format”:”default”,”field_file_image_alt_text[und][0][value]”:””,”field_file_image_title_text[und][0][value]”:””},”type”:”media”,”link_text”:null,”attributes”:{“height”:”3631″,”width”:”2415″,”style”:”width: 66px; height: 99px; float: left; margin: 5px;”,”class”:”media-element file-default”}}]]Mohammed is a 25-year-old accountant working in Oakville. He has a decent job and good salary, earning $60,000 in 2016. At this rate, Mohammed is on track to receive the maximum CPP benefit in retirement: $1,092.50 a month in 2016. With labour's plan to double benefits, the CPP will pay him twice this amount ($2,185 a month if it was paid out today) — a predictable, secure monthly income that won't run out until Mohammed does.
[[{“fid”:”864″,”view_mode”:”default”,”fields”:{“format”:”default”,”field_file_image_alt_text[und][0][value]”:””,”field_file_image_title_text[und][0][value]”:””},”type”:”media”,”link_text”:null,”attributes”:{“height”:”4119″,”width”:”2741″,”style”:”width: 66px; height: 99px; margin: 5px; float: right;”,”class”:”media-element file-default”}}]]Freya is a 37-year-old child-care worker in Lethbridge who will earn $45,000 this year. With this level of earnings, Freya would receive $917.70 a month if her CPP retirement benefit was paid out today. With labour's plan, Freya would save through the CPP for another 28 years at a higher rate, and receive an additional $626.85 a month, for a total of $1,544.55 a month if she was receiving her CPP benefit today.
[[{“fid”:”796″,”view_mode”:”default”,”fields”:{“format”:”default”,”field_file_image_alt_text[und][0][value]”:””,”field_file_image_title_text[und][0][value]”:””},”type”:”media”,”link_text”:null,”attributes”:{“height”:”3472″,”width”:”2310″,”style”:”width: 66px; height: 99px; margin: 5px; float: left;”,”class”:”media-element file-default”}}]]Jason is a 44-year-old building maintenance worker in Saint Jean earning $31,000 in 2016. When Jason retires at age 65, he can expect to receive a modest CPP benefit under the current set up ($655.50 a month if it was paid out today). If Jason had an opportunity to save more through the CPP for another two decades, he could expect to retire with an additional $323.87 a month (in 2016 terms), giving him $979.37 a month in retirement. A significant boost for someone on a modest income.
[[{“fid”:”975″,”view_mode”:”default”,”fields”:{“format”:”default”,”field_file_image_alt_text[und][0][value]”:””,”field_file_image_title_text[und][0][value]”:””},”type”:”media”,”link_text”:null,”attributes”:{“height”:”3866″,”width”:”2572″,”style”:”width: 66px; height: 99px; margin: 5px; float: right;”,”class”:”media-element file-default”}}]]Karuna is a hard-working and dedicated 29-year-old artist living in Kelowna. Her earnings from occasional shows and her part-time waitressing job that helps pay the bills will add up to $21,000 in 2016. With this level of earnings, Karuna can look forward to scraping by on a low CPP pension in retirement ($427 a month if was paid out today). Even at her current low wages, labour's plan would allow Karuna to retire with an additional $376.11, for a more-livable monthly CPP benefit of $803.11 if it were paid out today.
[[{“fid”:”811″,”view_mode”:”default”,”fields”:{“format”:”default”,”field_file_image_alt_text[und][0][value]”:””,”field_file_image_title_text[und][0][value]”:””},”type”:”media”,”link_text”:null,”attributes”:{“height”:”3592″,”width”:”2390″,”style”:”width: 66px; height: 99px; margin: 5px; float: left;”,”class”:”media-element file-default”}}]]Nila is a 55-year-old support staff person working in the principal's office of a public school in Brandon. Over the course of her lifetime, Nila's earnings have averaged about $26,000 in 2016 dollars. When she retires in 10 years, she will receive a monthly CPP retirement benefit that is close to the average (she would qualify for $524.40 in 2016). Under labour's plan, if Nila had the chance to save for just 10 more years at a higher rate, her monthly CPP benefit would increase by $129.35, giving her a total of $653.75 a month if it were paid out today — a small but welcomed improvement.