If you’ve ever met with a financial planner, you’ve probably noticed the conversation often starts with a discussion about the Canada Pension Plan.
The reason is simple: that planner knows the CPP is a secure source of funding that helps millions of Canadians start planning for retirement.
That’s why the planner starts by asking how much you currently earn, and then subtracts what you can expect to get from both CPP and Old Age Security to begin determining how much of your income needs to be replaced to live comfortably when you retire.
Next comes subtraction of any pension plan – be it Defined Benefit, Defined Contribution, or some other work or private plan.
This process ensures you develop a retirement savings plan that meets your lifestyle needs.
If you have a workplace pension program, representatives from that plan should visit periodically to discuss the program with employees.
They also will talk to you about where CPP fits into your overall retirement-income picture.
These are important conversations, so take every opportunity to learn all you can about how you’ll fund your future.
CPP Investments, Investing Today for Your Tomorrow.
The content on this site is provided for information purposes only. CPP Investments is not a financial advisor, and the content on this site does not provide financial advice. Every person’s financial planning needs are different. For advice on how you should prepare financially for retirement, please consult a credentialed professional financial advisor.
CPP Investments is focused on delivering returns over a very long horizon. We construct a portfolio that has a diversified, long-term asset mix – as of March 31, 2021, 29.2% is Public Equities, 26.7% Private Equities, 23.1% Fixed Income and 21.0% Real Assets. Learn more.