The Canada Pension Plan: Built to Last for Generations

 If you’ve been hearing rumours or social media chatter that the Canada Pension Plan (CPP) is “running out of money,” you’re not alone. Many retirees and soon-to-be retirees have raised that concern lately. The truth, though, is far more reassuring: the CPP is not only stable,  it’s one of the strongest public pension systems in the world.

A World-Class Fund

The Canada Pension Plan Investment Board (CPPIB) manages the CPP fund. It operates independently from government, with a clear mandate: to grow the fund and make sure Canadians’ pensions are secure for the long term.

As of mid-2025, the CPP Fund had over $650 billion in assets invested around the world ,  in stocks, bonds, real estate, infrastructure, private equity, and renewable energy projects. That global diversification is one of the reasons it consistently performs well, even when certain parts of the market dip.

Over the last decade, the CPP has earned an average annual return of about 9%, after costs. That’s a strong record, especially given the mix of market conditions and global uncertainty in recent years.

Regular Checkups for Long-Term Health

Every three years, the Chief Actuary of Canada performs a full financial review of the CPP. The latest report, released in 2022, confirmed that the CPP remains fully sustainable for at least the next 75 years, even under conservative assumptions about the economy, wages, and demographics.

That means the contributions working Canadians and their employers make today will be enough to fund benefits for current and future retirees for decades to come.

Unlike some pension systems around the world that rely heavily on government budgets, the CPP is self-financing. It doesn’t depend on tax revenue,  the money comes from payroll contributions and investment returns. This structure makes it more resilient to political and economic changes.

Why You Can Feel Secure

The CPP’s strength comes from a few key factors:

• Professional management: The CPPIB is staffed by world-class investment professionals, not politicians.
• Diversified investments: The fund isn’t tied to one region or one type of asset.
• Independent oversight: Regular audits and transparent reporting keep everything accountable.

Even when markets fluctuate, the fund’s long-term strategy ensures stability. Remember, pension investing is a marathon, not a sprint.

A Promise That’s Being Kept

For retirees, the CPP remains a reliable, inflation-adjusted income that lasts for life. For those still working, it’s comforting to know that their future benefits are backed by a well-managed, fully funded system.

So, if you hear someone say “the CPP is in trouble,” you can confidently reply:

“Actually, the Canada Pension Plan is one of the most secure retirement funds anywhere ,  and it’s built to take care of us for generations to come.”

That’s something all Canadians can feel good about.

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.