Canada Pension Plan

[Bleach]

I just noticed on my pay-stub, I am paying CPP. What do people think of this plan? Are there better options or is it better to have a second backup for old age?

I am only 23 so I have a little time before, I need to worry about it.

[bcpaul]

LOL...23 and your first job hey.

It is a ponzi scheme, don't count on it when you're retired. The boomers will dry this fund up quick.

[Sn0man]

It is a ponzi scheme, don't count on it when you're retired. The boomers will dry this fund up quick.

Yup. We pay a small fortune into it and will never get the opportunity to benefit from it. Best to start your own retirement savings plan since this 'ponzi scheme' won't likely be around long.

[Smurf]

My best bet would be don't depend on anyone or anything other than youself. Start now to make plans for the future and get in the habit of saving. Every year you leave it, it gets that much harder. When you get there if you have addittional things like CPP and/or OAS it is a bonus, but at least you will be secure if they fizzle. Listening to the news these days tells the story of how many people can't afford to retire and most can collect both CPP and OAS. Just remember also that debt plays a huge part in your ability to save. Keeping debt under control is probably the most important thing you can do. Don't get caught up in the I've got lots of time syndrom.

As far as CPP itself it is not that great. Anyone can probably do better by investing that same money themselves. The problem lies in the fact that many don't do it. They either leave it till it is too late or don't do it at all. It was set up as a type of forced savings for those types of people. It does give you a few hundred a month if it is still there when you need it.

Hope this doesn't sound too much like a parents lecture but the time to start watching debt and saving is now. It will pay big dividends in the end.

[Bleach]

LOL...23 and your first job hey.

It is a ponzi scheme, don't count on it when you're retired. The boomers will dry this fund up quick.

Not, really I have been working from 17, I just haven't cared in till now. (or looked at my stubs, hey now I know what it is.)

Thanks for the advice, I have been thinking of getting a Mining job. It's not possible to own a place in Kelowna, off he wages they have here.

[Captain Awesome]

If you own your own business or self employed, you can sort of opt out of CPP payments by collecting dividends as opposed to salary. Overall you'd be paying less in income taxes, no CPP, and no IE payments. But you do have to plan for retirement and have your own plan B.