Saving incentives - MoneySense

Saving incentives

Boosting the CPP will only hurt Canadian RRSPs, the Fraser Institute says. This and more in the daily roundup.

  • Mandatory contribution increases to the Canada Pension Plan would likely result in reductions to RRSP contributions, according a new study from the Fraser Institute. The think-tank studied CPP and RRSP contributions over the last two decades and found that the percentage of tax-filers contributing and the amount they contributed to their RRSPs in each age and income group decreased as the CPP contribution rate increased.
  • Navigating the banking sector can be tough for anyone let alone new Canadians.  According to a poll from TD Canada Trust, most newcomers said they did not know how to open a bank account (47%), apply for a credit card (58%) or mortgage (87%) or send money to family overseas (72%) in their first three months in Canada. The biggest surprise new Canadians encountered setting up their finances was the credit rating system (24%) and not having access to credit right away (23%). The bank suggests immigrants apply for a secured credit card at their local branch and get into the habit of paying all their bills on time in order to quickly establish a favourable credit score.