Hello, this one is for Cannucks out there.
There's been quite a few articles about expanding the CPP, including this one:
http://business.financialpost.com/2013/11/09/an-early-look-at-what-big-cpp-will-look-like/There's also talk that if the Federal government refuses to do this, then provincial governments (at least Ontario) may do it on their own:
http://business.financialpost.com/2013/11/12/canada-pensions-kathleen-wynne/If they do change the CPP to provide a pension for earnings above the current $51,000, that's going to mean less money available to a Mustachian to save for an early retirement. All the money diverted for CPP is unavailable for an emergency, to start a business, or to retire early. The money is locked up until at least age 60.
I'd love to hear your opinions, but it looks like there are two options:
#1- Try to lobby politicians to not do this.
#2- If this does happen, then with this mandatory pension, you will have a government pension when 65 that will cover all of your mustachian living expenses. If that's true, then you could retire at 40, or 45 as long as you have enough
capital to meet your expenses until your government pension comes in. You could even exhaust your capital as long as you make it to when you pension kicks in, and the pension is enough to live off of.
Would it be crazy to have a home paid off, and be nearly broke when your pension kicks in? Is there any other way to retire early, without having too much money (and therefore having worked longer than necessary) when this government pension kicks in at 65 or 60?
Everything I read makes it sound like this is coming, and there's a consensus among politicians about this. If it is coming, I'd rather make strategy changes sooner than later.
Thoughts?