The enduring strength of the CPP Fund for Canadians

Canadians have navigated significant challenges in recent years. From adapting to a global pandemic to managing inflation and economic shifts, it’s natural to have concerns about the future. Changes in global markets, trade policies, and geopolitics continue to shape the economic landscape. Yet, amid this change, one reassuring constant is the strength and resilience of the Canada Pension Plan (CPP) Fund, an achievement that all Canadians can take pride in. Built for times like these When the CPP was introduced in 1966, it was designed to help Canadians retire with dignity. By the mid-1990s, however, financial challenges emerged as the number of retirees grew while the workforce supporting them shrank. In response, federal and provincial governments came together in 1997 to make a pivotal decision: they created CPP Investments to professionally manage and grow the CPP Fund, keeping it free from political influence. Since then, the CPP Fund has grown from an initial $12.1 million transfer in 1999 to nearly $700 billion today, with almost $490 billion of that a result of smart, long-term investing. Over the past decade, CPP Investments has delivered a strong 10-year annualized return of 9.2%. Yet, the true impact goes beyond numbers. It’s about helping ensure the financial security of millions of hardworking Canadians, standing tall and together to build a stronger, more resilient future. Investing for the long term Economic and geopolitical challenges are not new. Over the years, we’ve successfully navigated market fluctuations, policy changes and financial upheavals. By maintaining a well-diversified portfolio across asset classes and geographies, we reduce risk while making the most of opportunities. This long-term strategy ensures the CPP Fund remains strong and steady, even when markets are volatile. Independent experts at the Office of the Chief Actuary of Canada review the CPP every three years. Their latest report projects that the CPP will be financially sustainable for at least the next 75 years. That means Canadians can count on their pension to be there for them in retirement. A pension plan that stands out It’s this track record of solid performance that helps Canada’s national pension program stand above. While many nations struggle to sustain their pension programs or don’t even have one, Canada’s approach is widely recognized as one of the best in the world. Canada has ranked No. 1 in the Global Pension Transparency Benchmark for four consecutive years, with CPP Investments recently earning a perfect governance score of 100. The continued success of the CPP serves as a powerful reminder of what can be achieved through long-term vision and collaboration. Looking ahead with confidence These are challenging times, and many Canadians worry about their jobs, savings, and future. Yet, despite economic shifts and global uncertainty, the CPP Fund remains resilient, just as it was designed to be. We continue to refine our strategies, enhance our capabilities and strengthen our position so that Canadians can rely on the CPP today and for generations to come. Through careful stewardship, it will remain a pillar of financial security in retirement, allowing Canadians to retire with confidence and peace of mind. And that is something every Canadian can be proud of. Why the CPP is one of the best in the world Millions of Canadians rely on the benefits they receive. Regardless of where in Canada you work, live or retire, the CPP is there. Learn more