It seems like pretty solid logic: Raising mandatory pension contributions will improve Canadians’ economic well being in retirement. Hence federal Finance Minister Jim Flaherty’s recent proposal to reform the CPP with that goal in mind.
Well, don’t be too gullible, says Canadian Business’ Larry MacDonald. (Actually, he says, “don’t be too trusting,” but let’s not split hairs.)
Besides decreasing take-home pay, MacDonald’s main concern lies with the simple fact that the CPP is government-run, and government programs are often inefficient, with more attention paid to political objectives than to maximizing return on investments. You don’t say?