Rates of return for expanded CPP remain meagre

Last month, Canada’s finance ministers announced an “agreement in principle” to expand the Canada Pension Plan (CPP), which will require workers to pay more into the program starting in 2019 in exchange for higher CPP retirement benefits in the future.As we have noted elsewhere, the case for expanding the CPP is based on either incorrect or highly debatable claims. One of these claims is that the CPP offers a competitive, even a high rate of return for Canadians. A recent Fraser Institute study calculated the rate of return that individual Canadians receive from their CPP contributions in the form of

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