As per this CBC piece, the CPP rate for 2022 is going up.
The new rate for 2022 is 5.7% of the first $64,900 of earnings (minus the first $3,500 of earnings).
People (comment section) seems pissed that this rate is going up when in fact CPP is one of the best funded pension plan in the world. To many Canadians compare CPP to Social security in the US, which is a totally different plan.
The main reason we have CPP is because most Canadians do not save enough for retirement. There is many reason why people can't save, but there is also a behavioral aspect to post-work savings that many Canadians don't understand or willfully avoid (for many it is painful to save and not spend it all).
I know that people on this sub are not the norm, and most of us here could do without CPP and would prefer to manage our own investments. But in the end, even for people like us (savers), CPP is a great tool. There are many ways to use CPP at your advantage by delaying it and using personally saved/invested resources between 65 and 70 years old (save for Old Age Security).
Without CPP many Canadians would struggle when they reach retirement age and/or cannot work due to age, physical, mental or other reasons.
Also, when CPP was created, the average lifespan of the Canadian population was lower. Now some people will receive a pension for more than 30 years, which was not the original intent/design of the plan.
With the ever increasing lifespan and the fact that most of the population is not investing for their future, we need to keep CPP alive. Most of all, we need to fund the plan appropriately to allow future generations to receive a similar benefit.
Will the CPP increase affect you? How are you planning to integrate CPP with your investments?
I would like to get the opinions of r/PersonalFinanceCanada!