Understanding the CPP: Building a foundation for your retirement

Retirement may feel far away, but it’s closer than you think. With the Canada Pension Plan (CPP), you already have a head start. Your CPP contributions are building a foundation for your retirement, which you can count on later in life. The biggest financial risk in retirement is outliving your savings. The CPP helps protect against that risk. Your pension is guaranteed for life and indexed to inflation, ensuring it keeps pace with rising costs. It’s also fully portable across every province and in nearly 60 countries, so you can access your pension no matter where you live. Think of retirement income as a three-legged stool: the CPP is one leg, while the others could be workplace pensions, personal savings or home equity. Together, they provide balance and stability in your senior years. Where does your money go? A portion of CPP contributions helps pay benefits for today’s retirees. The rest is invested in the CPP Fund to help keep it growing so it will be there when Canadians need it. That’s where CPP Investments plays a vital role. We manage the CPP Fund independently and free from political influence, with a clear purpose: to grow it for the long term. We invest in Canada and around the world in infrastructure, real estate, energy, technology and more — generating returns that help grow the CPP Fund for generations. Since 1999, the CPP Fund has grown to more than $730 billion, with about $500 billion of that coming from the income earned through our investment activity. It’s on track to reach $1 trillion by 2031 — driven by disciplined, long-term investing that provides Canadians across the country with a dependable source of income in retirement. A track record of success The results speak for themselves. Today, the CPP Fund ranks among the world’s top-performing pension funds, according to Global SWF, a pension industry specialist. In fact, Canada’s Chief Actuary projects the CPP will remain financially sustainable for at least the next 75 years. For more than 22 million Canadians, the message is clear: the CPP Fund is built to last. CPP contributions are already giving you a head start on retirement with a pension fund that’s strong, secure and ready when you need it. Stronger together: Investing in Canada’s future In a world defined by constant change — from economic shifts to rapid technological advances — Canada stands out as a stable foundation for long-term growth. Learn more