When Canadians were forced to contribute more to the Canada Pension Plan in the 1990s and early 2000s, they ended up saving less voluntarily. If governments increase mandatory contributions to government run pension plans like CPP or the proposed Ontario Retirement Pension Plan, we'll likely again see a decrease in private, voluntary savings.
To learn more, read the Fraser Institute study: Compulsory Government Pensions vs. Private Savings: The Effect of Previous Expansion to the Canada Pension Plan, available at www.fraserinstitute.org
