Some people do. They’ve laid their plans, picked their place, and maybe even bought a retirement home. But for many, the realities of retirement remain ‘to be determined’ – or perhaps are seen simply a long way off.
For those whose plans aren’t set in stone, the option to receive pension funds, like the CPP, anywhere in Canada or the world is critical. That flexibility isn’t simply convenient, it means freedom. Not having to worry that your retirement is at risk.
CPP was designed from the start to be taken anywhere by Canada’s retirees. Whether you’ve spent a lifetime working in one province or moved from coast to coast, you can rest easy knowing that the foundation for your retirement savings will go wherever you do.
Solid, steady, secure
Since its founding in 1966, CPP has provided retirement benefits to millions of Canadians. It was created to be secure, and it has stood the test. That bedrock sense of safety is needed now, more than ever. When times are uncertain, there’s safety in numbers and Canadians do best when they work together.
By depending on contributions from Canadian workers and their employers across the country, CPP has avoided a lot of the risks that come from relying too much on the financial fortunes of any one region. That’s important, as pension experts continue to stress the benefits of pooling contributions from all corners of the country, helping minimize the impact of any regional economic and demographic risks that could affect the sustainability of the plan.
A national institution, the CPP remains a testament to what we can accomplish as a country when we combine our resources and work as one in favour of the public interest. It is a shining example of what governments can accomplish when they focus on the long term.
Our mission is clear
Know that all CPP contributions that aren’t used to pay benefits right away are invested and earn returns to help make sure that your benefits, and those of your fellow Canadians, will be there when you need them.
To help keep the CPP Fund sound, professional financial managers at CPP Investments take a long-term approach, carefully choosing investments that can produce steady returns to help fund the CPP for generations.
The law creating CPP Investments gave those managers a clear mission: to maximize investment returns without taking too much risk. That law also establishes that politicians can’t interfere with those investments, eliminating the risk that any federal or provincial government of the day could dip into the fund to back political choices instead of relying on sound financial judgment.
A world-class fund
Over the past 10 years, the managers at CPP Investments have overseen an average annual return of more than 10% after all costs are deducted. That’s better than most pension funds around the world.
CPP Investments earns those returns by actively investing across the globe, and here at home, in real estate, new medicines and vaccines, toll roads, utilities and more. And, of course, we invest in the energy sector, extending from traditional sources to wind, solar and new technologies that capture carbon emissions.
Spreading out where we invest, and what we invest in, is key to the long-term approach that helps make sure the Fund will be there for your retirement – and for your children and grandchildren too.
Every three years, the Office of the Chief Actuary of Canada (OCA) conducts an independent review on the sustainability of the CPP over the next 75 years. In its most recent review, the OCA once again affirmed that CPP continues to be built to last.
As the new year begins, we see more ahead of the uncertainty that disrupted the markets and economy in 2022. However, our long-term approach means the 21 million Canadians who depend on the CPP can take comfort in knowing that we’re not chasing investments that might be the hottest, latest thing in markets one day, only to come crashing down the next. We’re investors, not speculators.