For those Canadians who worry that our CPP benefits will run out before we do. You can rest easier. It will not!
Our nation’s pension plan (Canada Pension Plan or CPP) has a stellar report card. Its investment board reported on our collective Canadian plan with the following performance –
1) it has earned a very respectable 10.7% 10-year annualized rate of return at the time of this writing;
2) according to the Chief Actuary of Canada, the plan is sustainable over the next 75 years;
3) our collective retirement nest egg has grown to $434 billion.
Here’s the link to obtain more information and details on how CPP invests our money – https://www.cppinvestments.com/the-fund
The Canada Pension Plan Investment Board (CPPIB) manages $392 billion as of 2019/Mar/31 for Canadians. Its mandate is to optimize return on investment for the Canada Pension Plan (CPP), for many generations and with a low risk profile.
It released its latest annual report. The results are impressive.
- the plan produced a solid 8.9% return this past financial year;
- the plan’s net assets increased by almost $36 billion;
- the plan produced an average of 9.2% return for the last 10 years.
Facts on CPP. Did you know that –
- it was designed to provide just 25% of an average income (not 100%)?
- CPP contributions are kept entirely separate from government general accounts, and at arms length from possible federal government’s meddling and political interference?
- the plan’s chief actuary is responsible to review and make projections to ensure there will be no shortfall, for at least over the next 75 years?
If you’ve ever contributed to the Canada Pension Plan, you can view your estimated monthly CPP benefits on retirement. You need to obtain an account with MyService Canada and request a record of your personal CPP contributions over your working live.
MyService Canada – here’s the link
The bottom line on our collective CPP government pension – we need not worry our CPP will run of money any time soon!
CPPIB – here’s its link