As the Canada Pension Plan Investment Board releases its annual report this week on the billions of dollars it has under management, many Canadians remain unsure about where their own CPP money is and how secure it might be.
Financial advisers say there’s a misconception that the government can dip into the money, as well as unfounded concern about whether it might run out as baby boomers all retire and start drawing their pensions.
People also don’t know when to take CPP and what benefit they might receive, says Craig Hughes, director, advanced financial planning, at IG Wealth Management.
“The thing we see the most is ‘What am I going to get out of it?’ People don’t understand the mechanics and, at the end of the day, what am I going to get when I retire,” he told CBC News.
The CPPIB manages a huge pot of cash — $392 billion as of the end of March 2019 — with a mandate to invest on behalf of Canadians and keep the CPP sustainable over many generations. The professionally managed investment group has earned an average of 10 percent a year on that money for the past 10 years.
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See Also:
(1) Senators adopt 187 amendments to C-69, setting up another fight over controversial legislation
(2) Senate committee approves dozens of energy-industry-friendly amendments to C-69
(3) Create new coast-to-coast energy corridor to get pipelines built: Scheer
(5) Ottawa’s attack on Alberta has, for now at least, been thwarted
