Is the CPP projected to be around when you retire?


(NC) If retirement is years away, you might wonder what will happen when it’s your time to collect your Canada Pension Plan. Some may be concerned that the funds will not be around when it’s finally their turn to retire – whether that’s today, 20, 50 or 75 years from now.

To ease your concerns in these uncertain times, here are a few facts about the CPP fund and the organization that manages it for the long term.

CPP Investments was created in 1997 to invest the CPP fund with the aim of earning the best possible returns, without taking unnecessary risk. The organization invests funds that aren’t needed to pay current benefits and is independent from the government.

It is their responsibility to help ensure the fund is there for generations of Canadians, and the organization invests with an eye on the long term.

Employing that mindset, the value of the fund’s assets has more than tripled over the last 10 years. And the Office of the Chief Actuary has even verified in its latest report that released in 2019, the Fund is sustainable for the next 75 years, based on the legislated contribution levels.

Still, it is important to remember the CPP was never designed to pay for everything in retirement. Actively taking advantage of workplace pensions and other opportunities to save for the long term is a crucial step to creating your ideal retirement lifestyle.

While nobody can know what the full impact of COVID-19 will be on the global economy, the organization responsible for investing your retirement contributions has experience successfully managing through short-term difficulties.

With a long-term investing view, a highly diversified portfolio, and a deep bench of talent and expertise, CPP Investments will keep serving Canadians and help ensure the safety of your retirement income. Their work means you will be able to count on a solid foundation for your retirement plans.