A large literature in behavioural economics finds that households benefit from assistance with the challenging task of preparing financially for retirement. Workplace pension program characteristics such as default options or savings rate escalators tend to significantly increase contributions to these plans (Madrian and Shea 2001; Choi et al. 2004; Thaler and Benartzi 2004). Recent evidence … Continue reading
In recent years, there has been a strong push to expand the Canada Pension Plan (CPP). Ontario has already set out a plan to create an additional mandatory provincial program mirroring the CPP called the Ontario Retirement Pension Plan (ORPP), which is slated for implementation on January 1, 2017. Yet the debate about expanding compulsory … Continue reading
The cost of running the Canada Pension Plan has more than tripled, the result of transaction fees and external management fees, finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank. The study, Accounting for the True Cost of the Canada Pension Plan, spotlights the costs of administering … Continue reading
This short paper is the first in a new Caledon series, caledon social statistics. Using a combination of illustrative graphs and explanatory text, the series will explore social programs, tax benefits and trends in low income and other major social and economic indicators. In addition to income taxes, Canadians pay employment-related taxes, known as payroll … Continue reading