CPP expansion will do little to boost rate of return, particularly for younger Canadians

VANCOUVER—Despite an expanded Canada Pension Plan (CPP), workers in Canada—particularly younger workers—will still receive a meagre rate of return from their CPP contributions (2.5 per cent or less), finds a new analysis released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank. The provinces and the federal government have reached an agreement in principle on CPP expansion—a move that will increase mandatory contributions on working Canadians starting in 2019 in exchange for higher CPP retirement benefits in the future—with ratification of the agreement expected this week.