By Sandra Mann, MBA Financial Services, CPA, CGA, FPSC Level 1™

I’m sure you’ve heard by now that the Canada Pension Plan (CPP) is set for expansion beginning in 2019, but you may be wondering how the changes will impact how you manage your money today as well as how it will affect your retirement.

The changing face of work in Canada

When CPP was introduced in 1965, it was meant to be supplemental retirement income to bolster workplace pensions and personal retirement savings and investments. That intention hasn’t changed. What has changed is the Canadian “workscape.”

Working 30 years for the same company is not likely (or even desirable) for many people at the start of their careers. Climbing one corporate ladder is less common than seeking new opportunities at different companies. (I myself left a traditional financial services position for the fresh challenge offered by Money Coaches Canada and the Women’s Financial Learning Centre). Many Canadians change careers completely, some go back to school or start their own businesses. There is no defined path. Even those who decide to build a dedicated career with one employer are not immune to lay-offs and decreasing pensions. Continue reading →