According to a poll conducted for the Canadian Federation of Independent Business (CFIB), most Canadians can't afford to set aside any more money for retirement. Those who do have extra money say they wouldn't put it into the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP).
The survey of more than 1000 adults revealed that 58% of employed Canadians and 51% of business owners do not think they can set aside any more for their retirement than they already do.
When asked what kind of an effect an increase in CPP/QPP contributions for employers and employees would have (respondents could give more than one answer), 34% of employed Canadians said it would reduce their ability to spend on essential goods and services and 27% said it would reduce their ability to take advantage of other savings vehicles. As for business owners, 67% said a mandatory increase to CPP/QPP payments would increase pressure to freeze or cut salaries.
If they had additional funds to put towards retirement savings, where would Canadian employees invest? Allowed to select a maximum of three answers, 51% of those surveyed said they would put additional funds into their Tax Free Savings Accounts, 44% chose Registered Retirement Savings Plans, and 27% picked personal savings, investments, and other assets such as real estate and stocks. Just 18% said they would put extra money into the CPP or QPP.
"No matter how you ask the question, fewer than one in five Canadians supports putting more of their hard-earned money into the CPP or QPP," comments CFIB president Dan Kelly. "Premiers need to know that Canadians would choose to put any extra money for retirement savings into TFSAs, RRSPs or private investments over any increase in CPP/QPP."