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    CPP Liability

    AB is going pretty hard on this idea of its own PP plan and it's not an easy choice.

    So experts are chiming in that CPP is stable and has a $400b nest egg built up and we shouldnt mess with it.

    But did you know it has a trillion dollars in unfunded liability? I had no idea. There is another trillion in unfunded OAS and health transfers as well. Wonder if most Canadians know that.

    So $800b fed debt on its way to a trillion. Another trillion provincial debt. 2 trillion consumer debt and another 2 trillion liability in our pension plan? WTF. Canada is insolvent.

    #2
    Originally posted by jazz View Post
    AB is going pretty hard on this idea of its own PP plan and it's not an easy choice.

    So experts are chiming in that CPP is stable and has a $400b nest egg built up and we shouldnt mess with it.

    But did you know it has a trillion dollars in unfunded liability? I had no idea. There is another trillion in unfunded OAS and health transfers as well. Wonder if most Canadians know that.

    So $800b fed debt on its way to a trillion. Another trillion provincial debt. 2 trillion consumer debt and another 2 trillion liability in our pension plan? WTF. Canada is insolvent.
    CPP and OAS will get clawed back for those of us who saved and invested for our retirements, but paid into CPP for 40 years.

    Comment


      #3
      Here is some news the Good Ship Fairy Dust has Canada on the verge of being insolvent. Pensions will not be available to you if you're a millennial. Some of us Baby boomers probably would have been better putting that money into our own things.

      Comment


        #4
        Originally posted by jazz View Post
        AB is going pretty hard on this idea of its own PP plan and it's not an easy choice.

        So experts are chiming in that CPP is stable and has a $400b nest egg built up and we shouldnt mess with it.

        But did you know it has a trillion dollars in unfunded liability? I had no idea. There is another trillion in unfunded OAS and health transfers as well. Wonder if most Canadians know that.

        So $800b fed debt on its way to a trillion. Another trillion provincial debt. 2 trillion consumer debt and another 2 trillion liability in our pension plan? WTF. Canada is insolvent.
        Hey Jazz, if Canada is insolvent, what do you call the US since they are adding over 1 trillion in new federal debt alone each year?

        No doubt you are a follower of zero hedge. So wondering your thoughts of the article on zero hedge in 2019 which claimed then the true size of the US debt is actually $222 trillion? According to article unfunded US federal liability in social security and medicare alone is $50 trillion? https://www.zerohedge.com/news/2019-03-29/true-size-us-national-debt-including-unfunded-liabilities-222-trillion-dollars https://www.zerohedge.com/news/2019-03-29/true-size-us-national-debt-including-unfunded-liabilities-222-trillion-dollars

        And on top of the $222 trillion dollar federal government debt, US states and local government owe another $3 trillion and consumer debt in the US is $13 trillion.

        Comment


          #5
          Originally posted by dmlfarmer View Post
          Hey Jazz, if Canada is insolvent, what do you call the US since they are adding over 1 trillion in new federal debt alone each year?
          US has lots of places to implement taxation to shorten the gap and they have a robust economy with very young demographic, tons of outside investment, energy independent, reserve currency, stranglehold over all finance and some of the most profitable and best capitalized private companies on the planet. They have a chance.

          Now you do Canada... tell us what you see in the economy or management from these govts that will close a 6T shortfall?

          Comment


            #6
            OAS gets funded by general tax revenues and is subject to claw back at higher income levels. CPP is funded by contributions to its own pool so there is no claw back. How long CPP will remain solvent though as contributions shrinks is a good question and likely no one know the answer to that.

            Comment


              #7
              I heard a guy from Fraser institute talking about Alberta's share of the pot and how they would negotiate to split it off to do our own. By population it is about 70 billion but based on contributions it was almost half the pot.

              Out of curiosity does anyone know what happens if you move away from Canada as an individual, is there any provision to buy you out or can you still just collect when the time comes while living abroad or are you just sol?

              Comment


                #8
                Originally posted by GDR View Post
                I heard a guy from Fraser institute talking about Alberta's share of the pot and how they would negotiate to split it off to do our own. By population it is about 70 billion but based on contributions it was almost half the pot.

                Out of curiosity does anyone know what happens if you move away from Canada as an individual, is there any provision to buy you out or can you still just collect when the time comes while living abroad or are you just sol?
                Looked it up, CPP is portable OAS is not.

                Comment


                  #9
                  Originally posted by SASKFARMER View Post
                  Here is some news the Good Ship Fairy Dust has Canada on the verge of being insolvent. Pensions will not be available to you if you're a millennial. Some of us Baby boomers probably would have been better putting that money into our own things.
                  Oh I’m well aware of that. I guess I’m a millennial and have no intention of relying on the government for my retirement needs. If there’s anything left in the CPP pot when I hit the “golden” age it’ll just be a bonus ......... or beer money.

                  Squirrelling money away for RESP’s currently and getting a few matching dollars from the feds is a higher priority for the next 10-15 years anyway. My oldest daughter still says she wants to be a vet and was really excited when we pointed out the vet college in Saskatoon last winter when we passed through. Wonder what that will cost down the road ???

                  Comment


                    #10
                    Huh? Jazz is in favour of increasing taxes in the US to cover the growing deficit and paying off the debt!
                    Who would have thought that would happen?

                    Reigning in QE and raising taxes will be a job killer! LOL

                    Comment


                      #11
                      Lots of seniors are living off CPP and OAS. Not everyone has had the income to save for retirement on their own.

                      The private finacial sector has been charging excess management fees on many of their lack lustre investment funds.

                      In the next recession or depression don't plan on counting on your investments to fund all of your retirement.

                      Comment


                        #12
                        I've read a few stories lately saying this is one of the reasons governments are embracing the global climate change hysteria.

                        Governments desperately need money for under funded pensions, as Errol has pointed out numerous times, economies are becoming very fragile.

                        Most of the time finance ministers know their fiscal policies are not sustainable in the long term, but their need for power drives their decisions to reward the voters. I understand young voters with families and the struggles they go through and I understand as you get older why you call for fiscal restraint.

                        It's a dilemma to say the least.

                        Comment


                          #13
                          Originally posted by chuckChuck View Post
                          Huh? Jazz is in favour of increasing taxes in the US to cover the growing deficit and paying off the debt!
                          Who would have thought that would happen?

                          Reigning in QE and raising taxes will be a job killer! LOL
                          Unlike Canada where the govt has taxed every orifice they can, the US has been more measured so they have some room.

                          Canada has none, their next tax moves will kill the economy dead. They tried that on higher income earners already and got less revenue back. Most people will never see a CPP payout certainly not anyone under 40.

                          Just watch the socialist public go crazy when health care premiums get introduced.

                          Comment

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