Are Our Pensions Doing, Okay?

 Lately, more than a few retirees have been asking: “How are our pensions doing?” or “Is the Canada Pension Plan still secure?” These are fair questions, especially in uncertain economic times when the news seems full of mixed messages about markets, inflation, and government budgets.

Let’s take a closer look at the facts, and why there’s good reason to feel confident about the pensions that so many Canadians depend on. 

A word of caution, I am not a financial planner or an expert in finance, these are my thoughts based on some research and life experience. Take my views with a grain of salt, and do your own research, and talk to your own financial advisor  before you make any changes or moves.

The Big Picture: Pension Plans Are Holding Their Ground

Despite market ups and downs, the majority of Canadian pension plans,  both public and private,  appear to be performing steadily and remain financially sound.

According to Northern Trust Canada, the median Canadian defined-benefit pension plan earned a 3.6% return in the third quarter of 2025, and 4.3% year-to-date through September 30. Another major tracker, RBC Investor Services, reported even stronger results for its universe of pension plans: a 4.4% gain in the third quarter and 7.1% year-to-date.

The difference between the two sets of figures simply reflects the different groups of plans each company monitors. But what’s most important is that both show solid positive growth, and that’s reassuring.

These returns come after a challenging period in 2022 and early 2023, when inflation and rising interest rates caused turbulence in investment markets. Pension funds, however, are designed to ride out these waves. They are diversified across stocks, bonds, real estate, infrastructure, and private investments. This diversification cushions the impact of short-term volatility.

Public vs. Private Plans: Both Are Stable

Many Canadians participate in large public sector plans, like those for teachers, nurses, municipal employees, and other government workers ,  while others have corporate or private employer plans. Both types are proving resilient.

Data from BNY Mellon’s Canadian Asset Strategy View shows that public plans and private (corporate) plans have been trading places in terms of quarterly performance, sometimes one leads, sometimes the other. In recent quarters, both have posted consistent positive results.

Public pension plans such as the Ontario Teachers’ Pension Plan, OMERS, and HOOPP (Healthcare of Ontario Pension Plan) continue to report healthy funding ratios and strong governance practices. These large funds are among the most respected in the world for how they manage risk and long-term growth.

Private or corporate pension plans, meanwhile, are benefiting from improved interest rates, which have reduced their long-term liabilities,   meaning they’re in better shape to meet future obligations to retirees.

In simple terms: whether your pension is public or private, it’s being managed with care and is built to last.

Why Pension Plans Are Built for the Long Game

Pension funds don’t make investment decisions based on daily market headlines. They plan for decades ahead. Most have professional investment managers, oversight committees, and strict funding requirements set by provincial and federal regulators.

When the markets go through a rough patch, plans don’t panic-sell. Instead, they often rebalance, buying more of what’s undervalued and selling what’s overheated. Over time, this disciplined approach pays off.

Another key point: pension plans benefit from what’s called “pooled longevity risk.” That means because they serve large groups of members, the plans can better predict how long benefits will be paid and adjust accordingly. This stability is something individual investors can’t easily replicate on their own.

The Canada Pension Plan: Still One of the Strongest in the World

Alongside workplace pensions, almost every Canadian is entitled to the Canada Pension Plan (CPP). Despite some recent rumours and political chatter, the CPP remains one of the most stable and well-funded national pension systems in the world.

The Canada Pension Plan Investment Board (CPPIB) manages the fund independently from government, using professional investment strategies that diversify globally. As of mid-2025, it had over $650 billion in assets, and long-term actuarial reports continue to confirm that the CPP is sustainable for at least the next 75 years under current contribution and benefit levels.

So, if someone tells you “the CPP is running out of money,” you can safely say that’s simply not true.

What This Means for You

If you’re retired, or soon to be, it’s natural to feel uneasy when you hear about inflation, interest rates, or market swings. But the reality is that Canada’s pension system is doing what it was designed to do: provide steady, reliable income for life.

Of course, it’s still wise to keep an eye on your personal finances ,  maintain a mix of savings, watch your spending, and stay informed. But there’s no need to lose sleep about your pension plan suddenly collapsing or being “in trouble.” The evidence shows that pensions are performing well, funding levels are strong, and oversight remains rigorous.

In Summary

• Most Canadian pension plans are stable and showing positive returns in 2025.
• Public and private plans alike are well-managed and built to weather economic cycles.
• The Canada Pension Plan remains financially sound and sustainable for decades to come.

If you’ve worked hard your whole life, you deserve peace of mind in retirement and Canada’s pension framework is doing its part to provide that.

Part Three: Stories That Bind Us, The Grandparent Legacy

A grandparent’s greatest gift may not be what they leave behind, but what they continue to give: time, love, and stories.

If the grandparent of 2025 has one superpower, it’s storytelling. Whether shared in person, written in journals, or recorded on smartphones, their stories connect generations in ways that technology alone cannot.

Stories are how we make sense of the world, and grandparents, as lifelong witnesses to change, carry some of the richest ones. Their stories remind younger generations where they come from and help them imagine where they’re going. When a grandparent shares how they emigrated, built a business, or raised a family through challenging times, they pass on resilience and hope.

In 2025, many grandparents use digital tools to record their memories. Podcasts, digital scrapbooks, and video diaries have become modern “family heirlooms.” Some families even dedicate online archives where each generation contributes their voice, creating living timelines of shared history.

In an era where AI, automation, and social media dominate daily life, the human story has become a grounding force. Storytelling offers something technology cannot: empathy. A story told by a grandparent connects across time, reminding families of values that endure, kindness, gratitude, perseverance, love.

Research shows that children who know their family’s history tend to be more resilient and have higher self-esteem. They feel rooted, even in uncertain times. Grandparents, as storytellers, give them that gift, a sense of belonging that algorithms can’t provide.

The storytelling role is evolving, too. Many grandparents now encourage grandchildren to co-create family stories, turning memories into art projects, podcasts, or social posts. This exchange of creativity strengthens intergenerational ties and keeps traditions alive in fresh, modern ways.

By sharing stories, grandparents don’t just preserve the past, they empower the future. Each tale becomes a lesson in empathy, courage, and identity.

The grandparent of 2025 stands at the intersection of longevity, connection, and legacy. They are not simply looking back, they are still building forward, investing in their families, communities, and the shared stories that will outlast them.

Their evolving role reminds us that aging isn’t about retreat, it’s about contribution. Grandparents are living archives, community builders, and creative collaborators. And their greatest gift to the next generation may not be what they leave behind, but what they continue to give: time, love, and the stories that make us who we are.

As our families evolve, one truth remains constant: grandparents are the living heartbeat of connection. They remind us that every generation’s story is part of a larger one, and that by sharing it, we keep the circle unbroken. 

Part Two: The Heart of the Modern Family, Connection Across Generations

The modern grandparent isn’t fading from view, they’re redefining what family connection means in the 21st century.

In 2025, grandparents play a central role in shaping family culture and identity. They are not just caretakers or occasional visitors, they are often the emotional anchor in an age of mobility and change. In 2025, grandparents play a central role in shaping family culture and identity. They are not just caretakers or occasional visitors, they are often the emotional anchor in an age of mobility and change.

Rising housing costs and care giving challenges have revived the multi generational household. According to Statistics Canada, more families now live under one roof, blending the experiences of three or more generations. While this arrangement can be challenging, it also offers a wealth of opportunity. Grandparents provide continuity, childcare, and financial support, while gaining companionship and a renewed sense of purpose.

Children raised in these homes benefit from consistent love and multiple role models. They learn empathy, patience, and an appreciation for the life experience of others, qualities that are often hard to teach in fast-paced, digital environments.

The modern grandparent doesn’t fit one mold. Some are “active grandparents,” joining fitness classes or volunteering at schools. Others are “distance grandparents,” nurturing relationships through calls, texts, and shared online activities. And some take on full or partial guardianship roles, especially when families face illness or financial strain.

Grandparents are increasingly part of the care giving “team,” working alongside parents, educators, and healthcare providers. In doing so, they help close the gaps in social systems stretched thin by demand.

One of the most powerful roles grandparents play is that of family memory keepers. They link generations through stories, those of migration, resilience, love, and lessons learned. When a grandparent shares the story of how they met their spouse, overcame hardship, or changed careers later in life, they are transmitting far more than nostalgia. They are teaching endurance, adaptability, and the art of storytelling itself.

Grandparents also shape communities beyond their families. Many volunteer, mentor young people, or support local charities. They bring perspective and patience to community conversations, often becoming bridges between older and younger voices. Their involvement strengthens civic life and keeps them socially connected, counteracting the risks of isolation that many seniors face.

The result is a growing understanding: the grandparent generation isn’t fading from view, they’re redefining what family connection means in the 21st century.

Part One: Grandparents in a New Era, Living Longer, Living Larger

 Over the next few posts I will explore how longer lifespans, shifting family dynamics, and the power of storytelling are redefining what it means to be a grandparent today.

Age is not a limit, but a vantage point—a bridge between what was and what is still to come

Not so long ago, the role of grandparents was seen as a comfortable constant, occasional babysitters, holiday hosts, and family historians. But in 2025, that image has transformed. Today’s grandparents are living longer, staying healthier, and taking on dynamic new roles in their families and communities. They are not just spectators in their families’ lives; they are active participants, mentors, and sometimes even primary caregivers.

With lifespans extending well into the 80s and 90s, many grandparents are embracing decades of active grandparenting. Advances in healthcare, diet, and technology have made it possible for older adults to remain independent and engaged far longer than past generations. This “longevity dividend” means grandparents often see their grandchildren graduate, launch careers, and even have families of their own. In many families, four or even five living generations are now connected at once, a historical rarity that’s becoming normal.

Shifting family dynamics are also redefining the grandparent role. In Canada and elsewhere, blended families, multicultural households, and economic pressures have brought grandparents back into the family center. Some share housing with adult children and grandchildren to reduce living costs or provide stability. Others offer childcare so parents can manage work demands in an increasingly expensive world.

But this is not just about necessity, it’s about choice. Many older adults are choosing to stay deeply involved, helping raise grandchildren, supporting single parents, and modeling resilience and compassion. The “hands-on grandparent” has become both a practical and emotional cornerstone for many families.

Technology has become another vital tool. Grandparents today use video calls, messaging apps, and even gaming platforms to stay connected. A grandmother might teach her grandson to cook using FaceTime, while a grandfather shares family photos through a cloud album. These digital bridges mean relationships can thrive across distances that once divided families.

Grandparents are also learning from younger generations, with grandchildren teaching them to use tablets, fitness trackers, or language apps. This cross-generational exchange strengthens bonds and keeps older adults intellectually active, an important factor in maintaining cognitive health.

In this new era, the wisdom of grandparents isn’t just about “the good old days.” It’s about navigating change, teaching patience, flexibility, and empathy in a rapidly evolving world. Grandparents have lived through social transformations that help them guide younger generations through uncertainty, offering perspective and calm in times of turbulence.

As lifespans grow and families evolve, the grandparent of 2025 is a symbol of adaptability. They are living proof that age is not a limit, but a vantage point, a bridge between what was and what is still to come.