The federal government is currently considering increasing CPP and QPP benefits, which would mean a significant premium hike for working Canadians and even more serious impacts for the economy.

But small business owners in particular are concerned about the costs associated with any expansion of benefits, according to Canadian Federation of Independent Business president Dan Kelly.

Earlier this month, CFIB issued an update of its Forced Savings report, examining the so-called 10-10-10 proposal for CPP/QPP expansion.

This plan would hike CPP benefits by 10 percentage points from 25% to 35% of maximum pensionable earnings (MPE), raise the MPE by $10,000 from today’s $51,100 to $61,100, and implement all of this within 10 years.

Trouble is, this double-whammy payroll tax hike could mean that many Canadians see their take home pay drop each year on January 1 for 10 straight years, Kelly maintains.

To retirees, the offers can sound like the answer to every money worry: convert tomorrow’s pension cheques into today’s hard cash through so-called pension advances -- a cash-strapped retiree's answer to a pay day loan. 

But programs like these are having devastating financial consequences for a growing number of older Americans, threatening their retirement savings and actually plunging them further into debt, the New York Times reports.

The advances, federal and state authorities say, are not advances at all, but actually carefully disguised loans that require borrowers to sign over all or part of their monthly pension cheques.

And while not yet widespread in Canada, critics worry that the practice might soon migrate across the border.

Tax season doesn't have to be -- well, taxing.

If you're 65 or older, Canada Revenue Agency (CRA) has some tips on benefits and credits designed just for seniors.

For instance, if you were 65 or older on December 31, 2012 and your net income was less than $78,684 you can claim an age amount of up to $6,720.

You may also claim a pension income amount up to $2,000 if you reported eligible pension, superannuation or annuity payments on your income tax return. As well, if you're receiving a pension you may be entitled to pension income splitting with your spouse or common-law partner of up to 50 per cent of your eligible pension income.

Your Registered Retirement Savings Plan (RRSP) deductible contributions can also help reduce your income tax. You have until December 31 of the year you turn 71 to contribute to your RRSP.

Other tax breaks that are worth looking into include the Registered Disability Saving Plan (RDSP); Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit that helps people with modest incomes offset all or part of the GST/HST they pay; Working Income Tax Benefit (WITB); a disability amount; public transit amount; and medical expenses that you may qualify for.

If you're computer and web savvy you may also file your your income tax online through the CRA. The online service enables you to file your income tax and benefit returns, make a payment, sign up for direct deposit and track your refund. All you need is your Social Insurance Number and date of birth to access the system.

The agency also offers a Community Volunteer Income Tax Program to assist those with modest incomes or simple tax situations.

Remember...the deadline to file your Personal Income Tax is April 30, 2013. Those who are self-employed have until June 15 unless they have a balance owed and then the deadline is April 30, 2013.

By Donna Donaldson, MSN Money

Will you be filing your taxes online this year?

The dream of a leisurely retirement may be farther away than you think.

According to a new study by BMO Financial Group, more and more Canadians — 81 per cent to be exact — plan on working during their retirement.

Larry Moser, regional sales manager at Bank of Montreal, says it is a growing trend amongst retirees who feel the need for an additional income going into their retirement years.

“People are living a lot longer today,” explains Moser. “Life expectancy was typically around 72 years old. Now people are living well into their 80s and even 90s and are having to fund their retirement a lot longer than they ever had to [before].”

Canadians are twice as likely to support a Pooled Registered Pension Plan (PRPP) (64 per cent), rather than increase their CPP or QPP contributions (34 per cent) as a means to save more for retirement, according to a recent survey.

Do you feel the same way? The Canadian Federation of Independent Business certainly does. Or would you like to see greater access to CPP, as pension expert Monica Townsend argues? She's certainly convinced the Toronto Star's Martin Cohn.

Many advocacy groups had been pushing for a boost in future CPP benefits that would be funded by a phased-in increase in CPP contributions, paid for equally by workers and their employers.

Critics suggest that PRPPs aren't really "pensions" at all since employers don't have to participate in the first place and won't necessarily fund things if they do. Nor, unlike the CPP, will the resulting plans be able to provide a predictable, indexed benefit in retirement or the same sort of survivor and disability benefits.

The recession and subsequent sluggish economy appears to have impacted the generations differently.

And the most notable dichotomy is surfacing among the two youngest adult generations: Millennials and Generation X, according to a report from Financial Finesse, a large provider of workplace financial wellness programs across the border.

Millennials are managing their finances surprisingly well despite having by far the lowest income levels while Gen Xers are having a harder time with debt, making ends meet, and most aspects of overall financial planning, the report suggests.

Early and late baby boomers with young children appear to be over-prioritizing college planning at the cost of their own financial security, leaving themselves vulnerable as a result of not taking care of their own needs.

Although it's hard to argue against the win/win of estatements (save trees, save money, save clutter, thwart dumpster divers) the are very real consumer behaviour issues that work against going completely paperless -- particularly when it comes to money issues.

Three in four adults, for instance, say they prefer to receive retirement plan information on paper versus electronically. Despite teeming in boxesm only 23% are interested in receiving this information via email, even with a link to a website, according to a recent survey by AARP. 

70% said they would be more likely to read their statements if they received them on paper, and another 73% said they would be more likely to save hard-copy reports.

What's interesting is that the preference for paper was overwhelming for all age groups, even those who are online daily. However, those 50 and older are more likely to prefer paper (84%) than those younger than 50 (66%).

Do you have questions about retirement planning? How to protect your
family? Want to know more about Money for Life™?

For answers to these and other financial questions, check back here on Oct. 23 at 8 pm ET for an online LIVE Q&A session with a Sun Life Financial advisor. Sun Life's advisor will take your questions and provide you with insightful information and valuable considerations, in a no-pressure environment.

While take-home pay used to be the driver, more and more Canadian workers are coming to believe that  a secure pension plan is a more important component of an attractive pay package.

According to a survey from Towers Watson, one-third of Canadian employees would be willing to sacrifice a portion of their compensation in return for a better pension, while one in four would agree to forgo a bonus in exchange for additional retirement benefits.

“As financial insecurity becomes more widespread, Canadian workers are increasingly interested in a secure rewards package with retirement benefits they can count on,” said Ian Markham, retirement innovation leader at Towers Watson.

The survey found that 50% of respondents with a guaranteed defined benefit (DB) plan identified their retirement program as a key reason for joining their current employer, compared to 30% of respondents with a defined contribution (DC) plan or group RRSP, where the eventual payout is dependent on employees' investment fresults.