What people often forget is that if your only income is SS or CS you cannot pay into CPP. I agree that living in the moment is a big down-fall for people recently divorced. However, before you know it retirement is soon looking you in the face. Those little monthly CPP payments will make a big difference on one's ability to have a roof over their head sometime in the not-too-distant future for many, particularly if there were no retirement plans or if RRSPs were cashed in to pay lawyers.
Another thing to consider is that laws have changed regarding RRSPs and debt to CRA. You can't amass RRSPs and owe CRA. It doesn't take long to rack up a CRA debt on spousal support which is 100% taxable. I wonder how often recipients of SS go back to court to get more SS simply to pay tax debt?
I know in my situation I was left with a debt for our company. I had director's liability for this debt. Any perceived windfall from SS is simply not true, at least in my situation.
Another thing to consider is that laws have changed regarding RRSPs and debt to CRA. You can't amass RRSPs and owe CRA. It doesn't take long to rack up a CRA debt on spousal support which is 100% taxable. I wonder how often recipients of SS go back to court to get more SS simply to pay tax debt?
I know in my situation I was left with a debt for our company. I had director's liability for this debt. Any perceived windfall from SS is simply not true, at least in my situation.
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