Quote:
Originally Posted by mo_bettah
That's exactly what I'm doing
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Just to show others how much of a ripoff CPP is:
I have contributed the max CPP since I was 23yo. If I retire at 65yo that's 42 years of paying $2100/yr* to get a $12K/yr* income in retirement - how well does that workout for me?
*in today's dollars
Most pension plans use a 8% return, and inflation is around 2%. Assuming a $2100/yr contribution that increases with inflation, if I wasn't with CPP I'd get $23K/yr, not $12K!
That's just on my portion! If my employer gave me the additional 4.95% they contribute as income, I could invest this in my RRSP and have $46K/yr.
$46K vs $12K! I wish I could opt out of CPP. The effective ROI on the 9.9% CPP contributions is 3.1%! I could do as well putting my CPP contributions into a friggin bank account!