During these times of economic uncertainty, there’s one thing you can depend on: the Canada Pension Plan (CPP) will be there for you when you retire. Independent reviews conclude the pension that’s relied upon by more than 21 million current contributors and beneficiaries is in excellent shape for generations to come. Oddly enough, however, public opinion polls reveal the existence of a myth about the CPP: that it will run out of money before many Canadians are ready to retire.
Where did this myth begin and why does it still have a hold on some Canadians? CPP started in 1966 and was responsible for a significant drop in poverty rates among seniors, particularly women. But as the number of people receiving benefits grew, the plan ran into difficulty. During the mid-1990s, it was estimated CPP would no longer be sustainable by the mid-2010s. Many Canadians remember that dire forecast, but they don’t remember the dramatic action taken to rectify the situation. Working together, the federal government and the provinces came up with a solution: raise contribution rates and create a new, independent organization – CPP Investments – to invest funds not needed to pay current benefits to ensure the sustainability of the pension plan for generations to come.
A quarter-century later, CPP Investments manages $575 billion dollars, diversifying assets across geographies and asset classes to achieve growth in global markets over the long term. The organization is rated as the best-performing pension fund in the world during the past decade, according to Global SWF, an international consulting and research firm that tracks the returns of sovereign wealth funds and public pension funds.
Every three years, an independent body in the federal government reviews the state of the pension plan. The most recent review, completed last December, is a powerful myth-buster: it concludes CPP will continue to be sustainable for 75 years and beyond.
During these times of economic uncertainty, there’s one thing you can depend on: the Canada Pension Plan (CPP) will be there for you when you retire. Independent reviews conclude the pension that’s relied upon by more than 21 million current contributors and beneficiaries is in excellent shape for generations to come. Oddly enough, however, public opinion polls reveal the existence of a myth about the CPP: that it will run out of money before many Canadians are ready to retire.
Where did this myth begin and why does it still have a hold on some Canadians? CPP started in 1966 and was responsible for a significant drop in poverty rates among seniors, particularly women. But as the number of people receiving benefits grew, the plan ran into difficulty. During the mid-1990s, it was estimated CPP would no longer be sustainable by the mid-2010s. Many Canadians remember that dire forecast, but they don’t remember the dramatic action taken to rectify the situation. Working together, the federal government and the provinces came up with a solution: raise contribution rates and create a new, independent organization – CPP Investments – to invest funds not needed to pay current benefits to ensure the sustainability of the pension plan for generations to come.
A quarter-century later, CPP Investments manages $575 billion dollars, diversifying assets across geographies and asset classes to achieve growth in global markets over the long term. The organization is rated as the best-performing pension fund in the world during the past decade, according to Global SWF, an international consulting and research firm that tracks the returns of sovereign wealth funds and public pension funds.
Every three years, an independent body in the federal government reviews the state of the pension plan. The most recent review, completed last December, is a powerful myth-buster: it concludes CPP will continue to be sustainable for 75 years and beyond.
The world’s top-ranked fund on governance
We’re proud to share that CPP Investments has been named the world’s top-ranked fund on governance and among the very best on transparency and cost, according to the 2023 Global Pension Transparency Benchmark.
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