In 2019, Canadians will start paying higher CPP premiums. This new change was made in hope that their will be more retirement security for future generations.

Industry experts argue that this could also have a negative impact as well. Middle class households could see their disposable income decrease during their working years. This could effect their ability to save. For instance, how much they can contribute to the RRSPs each year.

One change that will help low-income households is the expansion of the federal working income tax benefit. This will help them offset the increase in premiums and lessen any financial pressure this may cause on their savings.

Here are the changes to the CPP that will gradually begin in 2019:

Increasing the income replacement rate to one-third from one-quarter
Increasing premiums on employers and employees by 1%
Increasing the maximum amount of income subject to CPP by 14% to $82,700
Expanding the federal working income tax benefit, to help low-income households offset the increase in premiums