CPP reforms need a complete rethink

The 2016 CPP reforms were solutions in search of a problem – and don’t even solve the imagined problem

CPP reforms need a complete rethinkBy Jason Clemens and Charles Lammam The Fraser Institute The Canada Pension Plan (CPP) needs a comprehensive review, followed by real reform. The provincial and federal finance ministers said recently they will re-examine certain aspects of the CPP reforms agreed to in late 2016. But they will avoid a larger re-evaluation of the efficacy of an expanded CPP. Clearly,…

Double D forced to hang up the skates

Back issues force Kindersley product Derek Dorsett to leave the NHL after more than 500 games

Double D forced to hang up the skatesClarion staff Health problems are forcing Kindersley’s Derek Dorsett to hang up his skates. The National Hockey League’s Vancouver Canucks announced last week that due to the health risks associated with playing, the 30-year-old must retire. Dorsett has played 515 NHL games through 10 seasons (with 51 goals and 76 assists for 127 points) with…

Should you defer collecting CPP and OAS?

Can you afford to hold off and increase your payments later? Will you need more CPP and OAS later in life? And how long do you expect to live?

Should you defer collecting CPP and OAS?Most people know they can start collecting their Canada Pension Plan (CPP) at age 60, even though they’ll get smaller monthly payments than if they waited until 65. Many people just want the money now and don’t care about any added benefits to delaying CPP and Old Age Security (OAS). The standard CPP and OAS…

RRSP or TFSA? Sorting out an investor’s dilemma

TFSAs provide great options. If you build up the money in your TFSA while you’re working, you can draw from it tax-free any time

RRSP or TFSA? Sorting out an investor’s dilemmaK.M. wrote to ask if she should stop making registered retirement savings plan (RRSP) contributions and instead focus on her tax-free savings account (TFSA). With a little personal information from K.M., we decided it would be best for her to focus on her TFSA. Here’s why: K.M. works in a job she’s likely to leave…

Train the mind and grow happier

A new weekly column by Nicole Bernier explores how you can overcome negativity, particularly as you age

Train the mind and grow happierHaving retired, my favourite uncle certainly didn’t expect the mental burden that accompanied his privilege of no longer having a job. “Day after day,” he said, “I have lots of free time. My mind is in a state of chaos. I can’t stop thinking too much and my past mistakes are starting to haunt me.”…

Aging population upending current interest rate policy

With the number of seniors living off retirement income rising, increasing interest rates no longer a precursor to a cooling economy

Aging population upending current interest rate policyCanadians are constantly reminded that we’ve let ourselves get too deeply into debt and if the cost of that debt – interest rates – increases, we’ll be in deep yogurt. To the extent that such debt is mortgage-based and the average price of homes has been rising, this debt should be manageable. I don’t expect…

Who benefits from an expanded CPP?

The government? Likely. High earners? Definitely. Middle-income earners? Unlikely. Low-income workers may even see a reduction in overall benefits

Who benefits from an expanded CPP?As recently as June 2016, the federal and provincial finance ministers agreed to expand the Canada Pension Plan (CPP). It's so recent, in government terms, that many of the details of benefit entitlements, costs and investment criteria still aren’t known. But it’s been long enough for deep thinkers on matters of social security to delve…

Paying a high price for success, even after you die

There’s no hiding from the success tax, but several things can help legally reduce or even eliminate the amount your estate or your heirs pay

Paying a high price for success, even after you dieThere’s no official estate tax in Canada but we do have what I call the success tax. It's what we pay if we’ve been financially successful in a lifetime of investing and asset accumulation. The more successful you’ve been, the greater the tax could be. If you have assets that will be taxable when sold or when deemed to have been…