beyond MD with Dr. Yatin Chadha Ep #92: Why Contributing to the Canada Pension Plan (CPP) is a Good Idea - with Jason Yee, CFA
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Jun 5, 2025 In this discussion, Jason Yee, an engineer and financial analyst passionate about the Canada Pension Plan (CPP), reveals why contributing to CPP is crucial. He delves into the enhancements made in 2019 and 2024, explaining how they benefit future retirees. Jason addresses common misconceptions, shares insights on timing contributions, and what factors influence your CPP benefits. He also highlights how small business owners can strategically use CPP for retirement planning, making a compelling case for its importance in ensuring financial security.
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CPP is Part of 3-Pillar System
- The Canada Pension Plan (CPP) is part of a three-pillar retirement income framework including OAS, employer programs, and personal savings.
- It aims to provide reasonable minimum income at retirement, supporting financial security alongside other sources.
CPP Guarantees and Returns
- CPP contributions correlate with the amount you receive; more paid equals more benefit.
- CPP payments are guaranteed, last for life, and include inflation protection, reducing retirement income risks.
Why CPP Is Polarizing
- CPP is polarizing due to its mandatory nature and perceived fairness on national and personal levels.
- Some misunderstand CPP decisions which fuels controversy, though better info can reduce polarization.