‘We’ll make it work, somehow’
Family looking at daycare, house may feel sting of increased CPP premiums
The Star, working with an accountant to crunch the numbers, examined how the reformed Canada Pension Plan affects Ontarians. Here’s what one family had to say: Gerald Azzopardi, Lynsay Hunter, Gabe Ages: 45, 38, 10 months old Annual household income: $100,000 RRSP: Yes Gerald Azzopardi and Lynsay Hunter work as a registered massage therapist and property manager, respectively. Their life is filled with change at the moment, with financial implications.
Their baby, Gabe, was born 10 months ago. They moved into their new rental home outside Markham two weeks ago. And on Tuesday the couple picked up their marriage licence, with wedding costs to come. “It’s a concern,” said Hunter. When fully implemented, the reformed Canada Pension Plan would see each of their annual premiums rise to about $2,770 from about $2,300, based on their current in- comes and preliminary figures from the Department of Finance.
(All premiums estimates come from numbers crunched by accountant Bruce Ball, based on projected figures provided to the Star by the Department of Finance.) “We’re just talking about saving as fast as we can now,” said Hunter, after the reformed CPP was announced.
“We’re a bit behind the 8-ball, but we’ll make it work, somehow.”
The projected increase of the maximum pensionable income to $82,700 in 2025 from today’s $54,900 won’t help them.
“The target market for this change is what we would think of as middleincome people earning more than $54,900,” said Kevyn Nightingale, tax partner with MNP accounting and tax consultancy in Toronto.
Azzopardi has been stowing away cash in an RRSP since 2001, but only recently opened a “real” savings account. He noted they hope to bolster their assets by possibly investing in property in Panama or Costa Rica.
“If we don’t (retire) here, we’ll make it work in some other tropical para- dise,” he said.
The couple is encouraging Azzopardi’s mother to make the move from London, Ont., to a $1,000-amonth apartment in the GTA. They don’t expect to take on any costs to help support her. But private daycare for Gabe is looming and they still hope to put down a mortgage on a home.