Tag Archives: Globe and Mail

May 8: Best from the blogosphere

By Sheryl Smolkin

In late April the Globe and Mail’s Globe Talks series widely advertised a panel discussion called “Invest Like A Legend” hosted by Report on Business editor Duncan Hood and featuring speakers David Rosenberg, William J. Bernstein and Prett Bannerjee.

When Kerry K. Taylor aka Squawkfox read about the session, she immediately blogged her displeasure in A woman’s place is on a panel.She wrote, “Despite The Globe’s inability to ‘find’ a lady investing expert, both my Twitter feed and my inbox exploded with prospective panelists. So I made a binder — a binder full of financial women.”

Therefore, in solidarity with some of the terrific financial women I have met over the last several years as a personal finance writer, this week’s Best from the Blogosphere highlights some of their work.

In her blog Want to cash-out on your real estate? Read this, Lesley-Anne Scorgie says, “When times are good in real estate there are plenty of reasons to cash-out. But, the cash-out only works to your financial benefit if you’re actually putting real money towards your net worth…that does not mean selling an expensive property and using the equity to buy a less expensive property.”

Toronto Star consumer columnist Ellen Roseman documents changes to Tangerine Bank’s no-fee money-back MasterCard that she says “wowed so many Canadians eager for innovation.” She notes that barely one year after the launch, Tangerine MasterCard is raising fees and cutting benefits – a move many customers call bait and switch. For example, the two percent rebate on two categories of purchases remains. But the rebate on all other purchases dropped to 0.5%, starting April 29.

Cait Flanders, who has previously written about her one year shopping ban and extensive decluttering says it’s now time for her to embrace slow technology. While she acknowledges freely that social media has played an important role in forging her personal and business relationships, she has committed to:

  • A 30-day social media detox (April 29th – May 28th).
  • Figure out the role she wants social media to play in her life.
  • Check/reply to email less often (also experiment with not checking on her phone).
  • Figure out the role she wants technology to play in her life (phone, computers, TV, etc.)
  • Read from a book every day

Jordann Brown, who blogs at My Alternate Life, recently shared her experience in How to Sell a Car in Canada as a Beginner. She researched how much her Volkswagen City Golf was worth and concluded she could sell it for much more than the $1,200 the dealership offered her when she bought her 2014 Subaru Crosstrek. She determined the car was worth $4,000, had the car professionally cleaned and did some small repairs. The car was advertised for $4,500 on Kijiji and after several days she happily accepted a $4,000 cash offer.

And finally, Jessica Moorhouse shares valuable information about banks and credit unions with free chequing accounts in Canada. You will not be surprised to discover that the list does not include the big five banks. However, Tangerine is now owned by the Bank of Nova Scotia.


Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

April 24: Best from the blogosphere

By Sheryl Smolkin

It’s show time again! For your viewing pleasure, in this monthly feature we present links to a selection of personal finance videos.

For students who may be filing an income tax return for the first time (and there is still one week left), CRA offers a series of 10 short videos. For example, Segment 2: Do I have to file is geared towards helping Canadian students determine whether or not they need to file an income tax and benefit return.

Globe and Mail columnist Rob Carrick shares four steps for millennials to get started as  investors, including where to put savings for a home down payment and where not to invest  savings.

Preet Bannerjee, author of Stop Over-Thinking Your Money: The Five Simple Rules of Financial Success (Portfolio Penguin, 2014) offers five simple rules of financial success. Rule #1 is to “disaster-proof” your life.

And finally, a video from the Canada Deposit and Insurance Company interviews three couples about their financial hopes and dreams and ways that they are protecting their hard-earned money.


Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

April 3: Best from the blogosphere

By Sheryl Smolkin

It’s almost two weeks since the 2017 federal budget was tabled, so there is lots of “second day” commentary in the mainstream media to draw on for this issue. Saskatchewan also tabled a budget including some provisions that will impact your bottom line.

In the lead up to the federal budget trial balloons were floated regarding making employer-paid premiums for health insurance taxable benefits and changing the taxable rates for capital gains, but none of these dire predictions came to pass.

In the Ottawa Citizen, Kate McInturff, a senior researcher at the Canadian Centre for Policy Alternatives wrote that the budget is a first step to better the lives of women in Canada. She reports that the government will spend $100.9 million over five years to establish a National Strategy to Address Gender-Based Violence — a problem that has directly affected more than one million women in the past five years.

Erin Anderssen at the Globe and Mail offers seven things to know about Canada’s new parental benefits. Once the provinces pass job protection legislation, parents will be able to stretch their leave out for 18 months, but this will mean stretching benefits at a lower rate. The government is expected to move quickly, but the changes may not happen until next year.

Contrary to pre-budget expectations, Lee Berthiaume notes in a Canadian Press article that life-long pensions for veterans were not included in the Liberal government’s second budget. Finance Minister Bill Morneau’s new fiscal plan did contain new spending for veterans and their families, specifically $725 million in promised additional benefits over five years. Still, as welcome as the new money will be, the big question for many veterans is how the government plans to bring back life-long pensions as an option for those injured in uniform.

Hello Uber tax, goodbye transit credit says CBC News. The proposed levy on Uber and other ride-hailing services will for the first time impose GST/HST on fares, in the same way they are charged on traditional taxi services. The non-refundable public transit tax credit — a so-called boutique tax credit introduced by the previous Conservative government — will be phased out on July 1. The credit enabled public transit users to apply 15% of their eligible expenses on monthly passes and other fares toward reducing the amount of tax they owe.

And closer to home, the Saskatchewan budget hikes provincial sales tax to 6% and for the first time, the tax will apply to children’s clothes. CBC presents an analysis of how the PST hike will hit you in the pocketbook.

The government will also wind down the government-owned Saskatchewan Transportation Company, which it says would have required require an anticipated subsidy of $85 million over the next five years.

There were 574 layoff notices attached to this budget, including cleaners in government buildings and workers at the Saskatchewan Transportation Company.

Other notable provincial budget measures include:

  • The exemption for the bulk purchase of gasoline is being scrapped and a tax exemption for diesel fuel is being reduced to 80% of the amount purchased.
  • So-called sin taxes on booze and cigarettes are going up.
  • Various tax credits — including for education and tuition expenses — are being eliminated.
  • Effective July 1/17saskatchewan will apply provincial sales tax to life, accident and health insurance premiums.
  • The Saskatchewan government says it will offset some of the tax increases by reducing income taxes by a half-point on July 1, 2017 and by the same amount on July 1, 2019.


Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Mar 27: Best from the blogosphere

By Sheryl Smolkin

It’s that time of month again. Here are a series of personal finance videos for your viewing pleasure.

Rob Carrick at the Globe and Mail says an overlooked way to prepare for retirement is to establish the groundwork for working beyond age 65 when you are still in your 40s and 50s.

Another interesting Globe and Mail video offers valuable advice on avoiding financial fraudsters including how to protect your computer and online passwords.

Bridget Casey from Money after Graduation posted three ways to spring clean your finances last April, but her suggestions are still relevant a year later. She says one of the first things you should do is get your free credit report.

Former gambler turned personal finance coach Beau Humphreys shares his journey from drowning in debt to financial freedom with Jessica Moorhouse in her Mo’ Money podcast.

In this video from CBC The National, Christine Burak and Natalie Kalata report that Canadians are living longer healthier lives but they are having more difficulty saving for a longer period of retirement.


Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Burn your mortgage: An interview with author Sean Cooper

By Sheryl Smolkin

Click here to listen
Click here to listen

If you think you can’t possibly afford to buy a home or that paying off your mortgage is a pipe dream, Burn Your Mortgage is the must-read book of the year. Today I’m pleased to be interviewing author Sean Cooper for savewithspp.com.

By day, Sean is a mild-mannered senior pension analyst at a global consulting firm. By night he is a prolific personal finance journalist, who has been featured in major publications, including the Toronto Star, the Globe and Mail and MoneySense. He has also appeared on Global News, CBC, CP24 and CTV News Network.

Thanks for agreeing to chat with us today Sean.

My pleasure, Sheryl.

Q: As a 20 something, why did you decide to buy a house?
A: Well I guess a lot of people strive for home ownership. My parents were my biggest influence. We always owned a home growing up, so I thought that owning a home was kind of the path to financial freedom.

Q: How much did your home cost, and how much was your down payment?
A: I purchased my home in August 2012 for $425,000 dollars. My down payment was $170,000, leaving me with a mortgage of $255,000. I didn’t go out and spend the massive amount the bank approved me for. I could have spent over $500,000 dollars but I found a house with everything that I needed for $425,000 and because of that I was able to pay off my mortgage in three years.

Q: How on earth did you save a down payment of $170,000 dollars? How long did it take you to save it, and how many hours a week did you have to work to do so?
A: Yes, it was definitely a sizable down payment for one person. I pretty much started saving my down payment while I was in university. I was able to graduate debt free from university and while I was there, I was working as a financial journalist. I was also working at the MBA office, and employed part-time at a supermarket. When I got my full-time job I was saving probably 75%-80% of my paycheck. I wasn’t living at home rent free. I was actually paying my mother rent.

Q: Kudos for your determination and stamina. Do you think working three jobs is actually a practical option for most people, particularly if they have young families?
A: No. As I emphasize in the book, that’s how I paid off my mortgage as a financial journalist on top of working at my full time job. While for somebody like me who is single it makes sense, it’s probably not realistic if you have a spouse and children. But there are plenty of things you can do to save money.

Q: Many people again think they would never, never be able to save up enough for a down payment. Can you give a couple of hints or tips that you give readers in your book that will help them escalate their savings?
A:
Definitely. First of all, you absolutely have to be realistic with your home buying expectations. You can’t expect to be able to buy the exact same house that you grew up in with three or four bedrooms and two stories. But you can at least get your foot in the door of the real estate market by perhaps buying a condo, or a town house, and building up equity, and hopefully moving up one day. Think about creative living arrangements. Rent a cheaper place than a downtown condo. Find a roommate.

Q: How can prospective home buyers use registered plans like their RRSP or TFSA to beef up their savings and get tax breaks?
A: If you are a first time home buyer, I definitely encourage you to use the home buyers plan. The government allows you to withdraw $25,000 dollars from your RRSP tax-free (it has to be repaid within 15 years). If you are buying with your spouse, that’s $50 000 dollars you can take out together. That’s a great way to get into the housing market. The caution I can offer is when you withdraw the money, make sure that you fill in the correct forms so you are not taxed on the withdrawal. If you’re not a first time home buyer, then I would definitely encourage you to use a Tax Free Savings Account, because it’s very flexible, and although you don’t get a tax refund, the balance in the plan accumulates tax-free.

Q: After shelter, which means mortgage and rent, food is a pretty expensive cost. How can people manage their food costs while still eating a healthy, varied diet?
A: I offer a few tips in my book. First of all, try to buy items like cereal and rice in bulk and on sale. Another tip I offer is to buy in season. I probably wouldn’t buy cherries during the winter  because they would cost me a small fortune. Try to buy apples instead, and during the summer if you enjoy watermelon, definitely buy it then. Try to be smart with your spending, and that way you can cut back on your grocery bill considerably.

Q: I enjoyed the section in your book about love, money, and relationships. Can you share some hints about how couples can manage dating and wedding costs, to free up more money for their house?
A: People like to spend a fair amount on their weddings these days, and there’s nothing wrong with that, but you just have to consider your financial future, and how that’s going to affect it. Also, when it comes to dating, make sure that you and your potential partner are financially compatible and have similar financial goals. For example, one might be a saver while the other is a spender. Sit down and make sure both of you are on the same page financially, and then find common financial goals, and work towards them.

Q: How can prospective home buyers determine how much they can actually afford?
A: If you are ready to start house hunting, I would definitely encourage you to get pre- approved for a mortgage. Basically, the bank will tell you how much money you can afford on a home. That way you don’t waste time looking at houses out of your price range. However, just because the bank says you can spend $800,000 doesn’t necessarily mean you have to spend that much.

Also don’t forget you will have to pay for utilities, property taxes, and home insurance plus repairs and maintenance. Come up with a mock budget ahead of time, and see how that will affect your current lifestyle. I would say if over 50% of your month income is going towards housing, that’s too much.

Try to kind of balance home ownership with your other financial goals, whether they are saving towards retirement, or even going on a vacation. That way all of your money won’t be going towards your house, and you will actually be able to afford to have fun and save towards other goals as well.

Q: You’re living in the basement and you rented the first floor. Why did you decide to do that, instead of vice versa?
A: Well I’m just one person living on my own, and upstairs there are three bedrooms and two bathrooms. I wouldn’t know what to do with all the space, so it made sense to live in the basement, because to be honest I lived in basement apartments for several years before that, so it wasn’t really much of an adjustment. I mean, personally I’d rather rent out the main floor than get a second or third job. It’s all about kind of maximizing all of the space that you have, and looking for extra ways to earn income.

Q: We rented the basement in our first house. Why did you decide to write the book?
A:
When I paid off my mortgage, a lot of people reached out to me for home buying advice. In the media, there seems to be a lot of, I guess, negativity surrounding real estate and big cities.

I always hear that the average house costs over a million dollars in Toronto and Vancouver. It seems like for millennials home ownership is really out of reach. I wanted to write a book to really inspire them and show them that home ownership is still a realistic dream, and it is still achievable if you are willing to be smart about your finances.

Q: Congratulations Sean. It’s a great book. I’m sure people reading and listening to this podcast will want to run out and buy it. Where can they get a copy?
A: They can order a copy on Amazon. It will also be available in Chapters and other major book stores across Canada.

Well that’s very exciting. Good luck.

Thanks so much.

 

 

 

 

 

You can purchase Burn Your Mortgage by Sean Cooper on Amazon.

This is an edited transcript of a podcast interview conducted in February 2017.

Feb 20: Best from the blogosphere

By Sheryl Smolkin

Get out the popcorn! It’s time for our selection of monthly personal finance videos.

First of all, if you don’t have a company pension plan for your employees, you need to know about the SPP business plan. Find out why the Sutherland Chiropractic Clinic set up SPP for their employees.

Globe and Mail personal finance columnist shares some great ideas for protecting yourself from online scammers.

In Save Your #@%* Money with these RRSP, TFSA, and RESP recipes Melissa Leong brings you an amusing look at the ingredients it takes to successfully save in these registered vehicles.

Preet Bannerjee explains how disability insurance works and why it is so important in this Money School blog.

And finally, if you have made financial mistakes along the way, it doesn’t mean you have irreparably ruined your financial future. Blogger Bridget Casey (Money After Graduation) makes a case for forgiving yourself for financial regrets.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Jan 16: Best from the blogosphere

By Sheryl Smolkin

With Brexit, the election of Donald Trump and the stock market’s long bull run in 2016, the big question everyone is asking is what is in store for the Canadian economy in 2017?

Well, it depends who you ask and on what day. Here are a few recent predictions in the mainstream media, which may or may not pan out. You be the judge.

Not surprisingly, there’s one risk that “Trumps” them all for Canada’s economy in 2017, said Royal Bank Chief Economist Craig Wright in early January at the Economic Outlook 2017 event in Toronto.

The impact of U.S. growth on Canada depends on the policies that are put in place across the border under President-elect Donald Trump, but at a minimum Wright noted the U.S. is headed in a more competitive direction, while Canada seems to be moving the other way. “So it’s not yet clear whether Canada will see a ‘Trump bump’ or perhaps a ‘Trump slump,'” he told iPolitic reporter Ainslie Cruickshank.

The Financial Post reports that the best loonie forecaster in the world believes the Canadian dollar will beat all its G10 peers this year. The loonie will nudge an additional 0.75 per cent higher to 75.75 US cents by the end of the year, according to Konrad Bialas, chief economist at Warsaw-based foreign-exchange broker Dom Maklerski TMS Brokers SA, who topped a Bloomberg ranking of Canadian dollar forecasters in the fourth quarter. That would extend the loonie’s three percent gain from last year, which made it the best performer among its Group-of-10 peers.

In the Globe and Mail economist Todd Hirsch makes a series of bold (and some not-so-bold) predictions for Canada’s economy in 2017 and beyond. For example:

  1. Canada-U.S. trade disputes will intensify.
  2. The Canadian dollar will dip below 70 cents early in the year, but finish 2017 at 78 cents.
  3. The Keystone XL pipeline will get Washington’s approval.
  4. And for sports fans, Montreal will win the Stanley Cup; University of Calgary Dinos will win the Vanier Cup; and, the Winnipeg Blue Bombers will win the Grey Cup.

On CBC News, Paul Evans offers the following  five reasons why Canada’s economy is looking up in 2017.

  1. The job market is recovering.
  2. Oil could be headed higher – finally.
  3. Despite of predictions to the contrary, the loonie could be headed higher.
  4. Trade is picking up.
  5. The TSX is near an all-time high.

Nevertheless, analysis from the Centre for Economics and Business Research (a UK think tank), published in co-operation with Global Construction Perspectives says Canadawill have the world’s 10th largest economy in 2017, but will be overtaken in a few years by South Korea.


Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Oct 17: Best from the blogosphere

By Sheryl Smolkin

Building on the old adage that a picture is worth a thousand word, in this edition of Best from the Blogosphere we direct you to video channels and specific personal finance videos you may want to follow regularly.

First of all, keep an eye on the series of videos from Saskatchewan Pension Plan, and in particular this one, which clarifies issues raised in a recent quiz posted on savewithspp.com. Other video blogs discuss how to become a member of SPP, how to start a company plan with SPP and why fees matter to your investments.

Money School with Preet Bannerjee tackles a whole range of topics including Employer Matching Retirement Contributions. Are you leaving money on the table?

Only buying a house is a bigger financial commitment than buying a car. The message in this humorous Get Smarter About Money video blog is that you have to look at the cost of ownership from operating costs, insurance, maintenance and financing to understand the big picture.

The Globe and Mail’s Rob Carrick is featured in the “Carrick Talks Money” series of video blogs. If you can’t figure out whether or not your investment advisor is making money for you, take a look at Where can I find out how much I’ve made or lost since I opened my investment account?

And last but not least, Bridget Eastgaard from Money After Graduation discusses two ways to pay off debt in The Debt Avalanche vs The Debt Snowball. Find out which is the best approach for you!

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Oct 3: Best from the blogosphere

By Sheryl Smolkin

The leaves are turning and the weather is changing. As fall visits us briefly before the long cold winter sets in, it’s time to re-visit recent posts from some of our favourite personal finance writers.

On Boomer and Echo, Marie Engen offers 5 Ways To Stretch Your Retirement Dollars. My favourite is to sign up for senior discounts. In Calgary an annual transit pass for seniors is just $95. BC Ferries gives a 50% discount on passenger fares (Monday to Thursday, except holidays). Retailers such as Shoppers Drug Mart have senior discount days. A number of universities and colleges offer free tuition, at least for non-credit courses.

Sara Milton writes on Retire Happy about Financial warning signs: Are you prepared for the worst?. She says before financial disaster hits, there have  usually  been warning signs for some time. Just like on the dashboard of a car, an individual’s financial “check engine” light was lit up like a Christmas tree and, either he/she didn’t notice or  deliberately ignored it in the hope that it would somehow fix itself and switch off.

While investors may be reluctant to sell stocks because the sale will trigger tax inclusions, Pat McKeough reminds us on the Financial Independence Hub thatCapital gains tax is one of the lowest taxes you’ll ever pay. For example, if an investor purchases stock for $1,000 and then sells that stock for $2,000, they have a $1,000 capital gain. Investors pay Canadian capital gains tax on 50% of the capital gain amount. This means that if you earn $1,000 in capital gains, and you are in the highest tax bracket you will pay about $247.65 in Canadian capital gains tax on the $1,000 in gains.

For most young people in college or university student loans are a necessary evil. But they can become a tremendous burden after graduation. How I worked my way through university by Robin Taub on Forward Thinking profiles Corey Barss (age 25) who grew up in Brantford and attended Ryerson University. By saving money while he was in high school and working nearly full-time as a cook and server at the Ryerson campus pub while he was in university, he was able to graduate with only $30,000 in student loans. Even when he got a full-time job he continued work 12 hours/week at the pub in order to become debt free in three years.

And finally, the Globe and Mail’s Rob Carrick writes that one of the most important financial literacy lessons young people can learn is how to deal with banks. In Millennials, banks are not your friends his message to students is that banks aren’t your friend, and neither are they your enemy. They’re companies you do business with and that means you have to have to go in prepared to defend your own interests. He says students should look for ways to bank for nothing, and he gives  important factors to consider when evaluating student bank accounts.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Does CPP expansion help low income earners?

By Sheryl Smolkin

Low earners stand to gain little from an expanded Canada Pension Plan (CPP), according to a new C.D. Howe Institute report. In “The Pressing Question: Does CPP Expansion Help Low Earners?”, authors Kevin Milligan and Tammy Schirle show the large differences in the net payoff from the expanded CPP for lower and higher earners.

Federal and provincial finance ministers agreed in June to expand the Canada Pension Plan. Under the status quo, CPP offers a 25% replacement rate on earnings up to a cap of $54,900. The expanded CPP will add a new layer that raises the replacement rate to 33.3% up to a new earnings cap of about $82,900 when the program is fully phased in by 2025.

To pay for this, both employer and employee contributions will be raised by one percentage point up to the existing earnings cap, and by four percentage points between the old and new earning caps. This expansion will be phased in during the period 2019 to 2025 for contributions, with benefits being phased in over the next 50 years commensurate to contributions paid.

This reform will substantially raise expected CPP benefits for most young workers now entering the workforce. For lower- and middle-earning workers, the higher replacement rate will lead to an eventual benefit increase of about 33% over existing CPP benefits.

For a high-earning worker, the maximum CPP benefits will increase more than 50% over the status quo. These expansions are large enough to make a noticeable difference for the younger generation of workers as the expanded CPP matures over the coming decades.

However, the C.D. Howe study authors note two important shortcomings of the new package hamper its effectiveness, both related to low earners.

First, low earners are already well covered by the existing suite of public pension benefits – many now receive more income when retired than when working. Why expand coverage where it is not needed? As a contributory pension, the CPP risks worsening the balance of income between working and retirement years for low earners.

Second, the income-tested withdrawal of some government-program benefits wipes out much of the impact of extra CPP benefits for many low-earners. Around one-third of Canadian seniors currently receive the income-tested Guaranteed Income Supplement (GIS), so concerns about interactions with income-tested benefits have a broad base.

In order to be eligible for the GIS in 2016, a single, widowed or divorced pensioner receiving a full OAS pension cannot have over $17,376 individual income. Where a couple each receives a full OAS pension they will not be eligible for the GIS if their combined income exceeds $22,944.

To summarize these issues: expanding CPP for low earners risks making some Canadians pay for pension coverage they don’t need. To make matters worse, extra contributions may reduce the living standards of low earners today for modest net rewards in retirement tomorrow.

The CPP agreement-in-principle reached by the finance ministers may address some of these concerns by offering an improvement to the Working Income Tax Benefit alongside the CPP expansion. It is possible that an expanded WITB could effectively counteract increased CPP contributions by some low earners, but no details of the WITB expansion have been provided to date. Nevertheless, low earners would still face the problem of CPP-GIS interactions that undercut the impact of expanded CPP benefits.

In a Globe and Mail article, authors Janet McFarland and Ian McGugan also note that expanded CPP does not do much to help people who do not collect CPP in the first place. That describes many senior women who spent most of their lives as homemakers and so earned little or nothing in CPP benefits. About 28% of single senior women over 65 live in poverty, according to a study this spring for the Broadbent Institute by statistician Richard Shillington of Tristat Resources.

In addition they say the planned CPP changes will also do only a limited amount to help affluent savers because the maximum amount of income covered by the plan will increase to only about $82,800 by 2025. Therefore, those with six-figure incomes will still have to save on their own if they want a retirement income that will replace a considerable portion of their incomes above the expanded limit.