Most working Canadians (60%) say they can’t afford to save more for retirement, according to a new poll by the Canadian Federation of Independent Business.
As a result, they say they likely wouldn’t put any extra money into CPP or QPP even if the government allowed it—only 18% would welcome mandatory increases in CPP and QPP, and only 19% would voluntarily invest more in CPP and QPP.
Overall, “fewer than one in five Canadians support putting more of money into the CPP or QPP,” says CFIB president Dan Kelly. “[They] would choose to put any extra money for retirement savings in [their] TFSAs, RRSPs or private investments.”
More than one third of Canadian employees (39%) want the government to reduce spending and taxes so it can create new incentives to help people save. Even for business owners, only 5% polled would favour CPP and QPP hikes.
“A mandatory payroll tax hike [could] hurt everyone,” says Kelly, given many business owners say they’d have to look at how that would affect wage increases and hiring outlooks.
But, he adds, “CFIB [does] support allowing voluntary additional contributions to CPP and QPP for Canadians who do favour [them] as retirement savings vehicles.”