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.