Canada Pension Plan Still Strong

The Canada pension plan is on a strong footing, according to a Forbes video news item.  The CPP Investment Board is managed independently of the Canada Pension Plan by experienced investment professionals to help sustain the future pensions of 17 million Canadians. The CPPIB’s investments have taken a hit but its management has been winning praise from around the world.

The CPP Investment Board has a website where you can learn more about its activities. Its role is to invest the CPP Fund to maximize returns without undue risk of loss. It also has a series of frequently asked questions with perhaps the most important one being the following:

Should Canadians be concerned about their CPP pensions?

No. Canadians receiving their CPP benefits have no cause for concern.  The $117 billion portfolio that we manage today is not being used to help pay pensions today.  In fact, it will be another another 11-12 years before a small portion of the CPP Fund’s investment income will be needed to help pay pensions.

Beyond that time, the CPP Fund will continue to grow for decades to come.  The $117 billion CPP Fund is broadly diversified and structured to help secure Canadians’ CPP pensions over the long-term. It is designed to withstand stock market cycles such as this one.

For more specific information on the actual pension arrangements, the following Canadian Government websites are useful:

• Income Security Programs
• Information on the Canada Pension Plan (CPP)

Related articles by Zemanta

• CPP shrinks by $10.3B