Tories unveil voluntary pension system Critics say PPRPs do little to help Canadians save for retirement

Do you like paying taxes? Government rules? Uncertain returns?

o you In a nutshell, the above idea is really a RRSP (you just deffer taxes in the future)

Do you believe taxes will be lower in the future? Sorry, if you do your own taxes you know this is not the case unless your income is well below $30,000.

Read below for more details. A better idea is an insured annuity which for a 65 year old male is over 7% guaranteed. Call for details

Returns will be entirely based on investment returns that will be generated from the market — there are no top-ups from government or employers, nor are there any guarantees of any payout. In that way they will be “defined contribution” plans, not defined benefit.

In practice, they will function largely like an RRSP. People who opt to open a PRPP will have access to the type of professional financial management that they otherwise wouldn’t have access to.

(source CBC News)

As an aside read below…

Finance Minister Jim Flaherty issues an economic update during a luncheon speech before the Calgary Chamber of Commerce in Calgary, Alta., Tuesday, Nov. 8, 2011. (Jeff McIntosh / THE CANADIAN PRESS) Staff

Date: Tue. Nov. 8 2011 9:54 PM ET

Finance Minister Jim Flaherty says Canada won’t return to a surplus until at least 2015-16, instead of 2014 as his government previously promised.

He said economic conditions are worsening, adding almost $16 billion to the deficit over two years, and he’s scaling back austerity measures that were intended to pay down the deficit as soon as possible.

Here is promises that will not happen…

Conservative party promises that hinge on a balanced budget:

– Family tax cut: The Tories would allow spouses with dependents under the age of 18 to split their income and therefore decrease the tax burden on the higher earner.

– Fitness tax credits: The children’s fitness tax credit would be bumped to $1,000 from $500 and a new $500 fitness tax credit for adults would be introduced

– Tax free savings account: The Conservative party promised to double the tax-free savings account deposit limit from $5,000 to $10,000 annually.