Get ready to shell out a little bit more in Canada Pension Plan contributions after a deal on reforms was reached Monday.
The scheme will see employers and employees pay about $408 more a year, or 1%, after the plan is fully rolled out in seven years; it starts with an increase of $7 monthly payments in 2019 (depending on the salary).
Is it a big government cash grab? No, this is a benefit, especially for younger workers who will contribute more longer and see their CPP benefits rise to $17,500 from $13,000.
Not everyone is going to receive a golden handshake and young people are even further behind than older workers and will likely have a hard time putting away funds for retirement.
These are the same workers who are squeezed financially between high housing costs, food inflation and paying off student loans while competing for jobs, most of which don't offer company pensions.
Many will say they can't afford to pay the increase. Small businesses are among those who will be further squeezed but it could also be argued that Canada can't afford not to expand CPP if younger workers are to have a future in their old age.
