The CPP is Canada's national retirement plan. It's designed to provide a basic income for millions of Canadians in their retirement.
It’s there for you, when you need it.
The Government of Alberta is asking its residents for their views on potentially withdrawing from the CPP. It’s an important decision for Albertans, with implications for all Canadians.
Canadians work hard to protect their financial future. In an uncertain world, the CPP is safe, secure, and set.
CPP Investments has helped grow the CPP Fund from $36 billion to $590.8 billion. Our 10-year annualized return of 9.3% (as at December 31, 2023), after all expenses, ranks among the top institutional investors globally.
We use our size and scale as a competitive edge to gain access to deals around the world that help to grow the CPP Fund. And our long investment horizon means we can assess our strategies and opportunities over decades, not just over quarters or years.
When it comes to pensions, there is strength in numbers. Pooling contributions from more than 22 million Canadians helps protect the CPP Fund from market volatility and changing demographics.
The CPP Fund is invested in Canada and in more than 50 countries. It holds assets in many sectors, such as Alberta oil and gas, ports in the United States, and toll roads in Australia. The investment returns we generate abroad are brought back to pay pension benefits in Canada.
Since its creation nearly 60 years ago, the CPP guarantees full portability across every province and in almost 60 countries, allowing you to access your pension wherever you live.
Independent experts have concluded the CPP is financially sustainable for generations to come. That means you, your children, and grandchildren can rely on the CPP for security in retirement.
The CPP Fund is managed by investment professionals who invest the funds and maximize returns without taking excessive risk. Governments do not direct how or where the CPP Fund is invested.
Right now, your CPP is safe, secure and set.
Federal and provincial governments created the CPP in the 1960s to help address poverty among seniors.
Due to changing demographics and economic conditions, the Chief Actuary of Canada found in 1995 that the CPP was in danger of running out of funds by 2015 unless action was taken.
In response, the federal government and the provinces came together with a common goal – help secure the CPP for future generations of Canadians.
The solution? CPP Investments was created in 1997, among other CPP reforms. Governments agreed that a professional investment organization with a clear goal to maximize returns, free from political interference, would be the best way to secure the future of the CPP.
The result? CPP Investments is a global investment success story. Since inception, the organization has achieved many milestones, including:
• $590.8 billion in assets, up from $36 billion.
• $386 billion in cumulative net investment income.
• A 10-year annualized return of 9.3% after all expenses.
Global rankings have shown that we delivered the highest 10-year returns of any global pension fund between 2013 and 2022.
The impact? The foundation of Canada’s retirement system is solid today and for decades to come. In 50 years, poverty among Canadian seniors has decreased by 86%, in part due to the CPP.
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Since the creation of CPP Investments, the Chief Actuary of Canada has consistently concluded the CPP is financially sustainable for generations to come. This remains true today even with Canada's aging population, longer life expectancies, and a decreasing dependency ratio.
Over 20 years ago, the federal government and participating provincial governments decided to let an independent group invest and manage the CPP Fund to keep Canada's national retirement plan safe and effective.
CPP Investments has one main job: to make sure the CPP Fund makes as much money as possible, without taking too many risks. This way, the CPP can keep growing and remain secure for the future. We operate separately from government, which means our decisions are not influenced by political interests.
CPP Investments makes the best financial decisions for the CPP Fund by maintaining a long-term focus, adhering to strong governance practices, and deploying patient capital at scale. This setup helps ensure the CPP will always be there to support Canadians in their retirement.
Many pension systems in Western countries are not functioning effectively, leading to a potential crisis of financial security for many retirees around the world.
In France, the government is trying to save its pension system by increasing the retirement age from 62 to 64. In the United States, social security is estimated to run dry by 2034 without substantial reform. While Spain had to bring forward major pension reform in 2011 by raising the retirement age to 67, the country’s pension system has once again come under pressure leading to further reforms to be introduced, including an increase to contribution rates.
Canada is one of the few countries that has a solvent pension plan. The bold reforms and foresight made by Canadian governments over 20 years ago ensured that the CPP would be able to sustain pension payments for millions of people today and tomorrow. The CPP is one of our country’s most significant public policy success stories.
Our organization was recently rated as one of the world’s best-performing pension funds over the past decade, according to Global SWF, an international consulting and research firm that tracks industry returns. When comparing the 10-year annualized rates of return from fiscal years 2013 to 2022 globally, CPP Investments ranked as the best in class among public pension funds.
We’re honoured to receive this recognition for our measured and prudent approach to investing, but what makes us most proud is that we’re continuing to grow the CPP Fund, so money will be there for you when you retire.
