It's officially 2019 and many of us are excited to start the year off on the right foot. At Frame we don't like to guess where the market or economy is heading (you likely get enough of that in the news), but some of these more certain changes could impact your financial situation.

Increased CPP Payments

You might start to notice that you are paying slightly more towards CPP on every paycheque. The main goal of this increase is to provide you with a higher CPP benefit during retirement. Full details can be found here, but the general plan is for the employee contribution rate to gradually increase from 4.95% to 5.95% over the next five years.

Decreased EI Payments

Although CPP payments are inching up, Employment Insurance (EI) payments deducted from your paycheque will drop by four cents for every $100 of insurable earnings.

Interest Rate Uncertainty

Earlier in 2018 everyone thought that the Bank of Canada would continue increasing interest rates through 2019. Now, with more recent economic uncertainty, it's harder for Canadians to know what will happen to interest rates in 2019. Some economists think that there could even be a slight rate decrease near the end of 2019 if things get bad enough. That being said, many forecasters still think that rates will rise slightly in 2019. One thing is for certain - predicting interest rate changes in 2019 will be difficult!

This blog post covers how to prepare yourself if interest rates do continue to rise.

TFSA Contribution Increase

It's welcome news for savers that the TFSA annual contribution limit will increase from $5,500 to $6,000. As the name suggests, your money grows tax free inside a TFSA, so reach out to us if you have questions on the best contribution strategy!

Rising Food Costs

Expect an overall food price increase of 1.5% to 3.5% throughout 2019. Vegetable prices will likely increase by 4% to 6%, but meat prices are expected to decrease -3% to -1%. This means that the average Canadian will spend $411 more next year on groceries.

Carbon Tax Changes

For provinces that don't already have carbon pricing systems in place, the federal carbon tax policy will come be coming into effect. This means that a lot of consumer fuels will be more expensive. Some 90% of the tax that is collected will be returned to lower income Canadians in the form of rebates. There will likely be interesting political and legal discussions revolving around this issue throughout 2019.


Frame can help you manage both known challenges and the unknown financial obstacles you might face this year. Contact us for a free 30 minute personal finance consultation.