Dec 21, 2015
By Bob Komsic
The report, by Statistics Canada, found there’s some reduction in investments when pension plan contributions are increased, but the automatic increases are a net benefit.
For example, for an average worker, a $1 automatic increase in pension plan contributions resulted in an average reduction in RRSP contributions of 55-cents.
But for workers who did not save much, the $1 automatic increase in pension contributions increased net savings by about 95-cents.