As federal and provincial finance ministers discuss proposals for increasing mandatory CPP and QPP premiums, public opinion data reveals Canadians prefer other options to help boost retirement savings.
In fact, 54% say tax cuts are the way to go, finds a CFIB poll. Another 47% say incentives and 35% want improved voluntary options. Meanwhile, only 18% say CPP/QPP increases are the best way for government to help Canadians save for retirement.
“Finance ministers should be asking if mandatory CPP/QPP hikes are a good idea, not just when is the right time to introduce them,” says CFIB president Dan Kelly. “Although governments have been talking about this for years, no one has ever stopped to ask Canadians if they support the idea.”
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The poll shows that if working Canadians are forced to pay more for CPP/QPP, 45% would have a reduced ability to spend on essentials like food, rent and mortgage payments and 42% would have a reduced ability to take advantage of other forms of savings. A survey of CFIB member businesses was also conducted, and it showed three-quarters of business owners would be under pressure to freeze or cut salaries if faced with a CPP/QPP hike.
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“Canadians and their employers are not saving more for retirement because they simply can’t afford to,” says Laura Jones, CFIB executive vice-president. “In the public poll, and a similar survey of CFIB members, 65% of Canadians, and 61% of small business owners, said so.”