168 Canada Pension Plan: Will It Be Around When You Retire? - Mei Maven, Director of Global Communications for CPPIB

We all pay into the Canada Pension Plan (CPP), but most of us have no idea what the heck it is! I talk with CPPIB spokesperson Mei Maven to get the facts.

Long description:

We all pay into the Canada Pension Plan (CPP), but most of us have no idea what it is, who manages it, or if it will even exist by the time we retire in the next 40+ years.

That’s why for this episode I talk with Mei Maven, the Director of Global Communications for the Canada Pension Plan Investment Board (CPPIB). I ask her all the important questions we all should know about CPP so we can understand how this pension plan can (and should) work into our individual retirement savings plans.

So…Will CPP Still Exist in the Future?

Since I was a young adult, I remember hearing conversations from my parents about how CPP wouldn’t be around by the time I would retire. I think that’s a big reason why I was so set on saving and investing for retirement as soon as I got a full-time job.

This is actually a fairly common worry amongst Canadians, so I wanted to make sure I got to the bottom of it. Well, the short answer is YES, CPP will be around by the time you retire. As Mei mentioned in the interview, it is almost guaranteed to be around for the next 80 years. It will probably (and hopefully) be around for longer than that, but I don’t think CPPIB can make assumptions further into the future than that.

Does This Mean I Don’t Need to Save for Retirement?

As Mei also mentioned in our interview, CPP is meant to supplement your retirement savings, not replace it. You still need to save for your own retirement, but it’s important to consider CPP when doing your calculations for how much you actually need to save up to retire comfortably.

One great tool to play around with is government’s free Canadian Retirement Income Calculator.

What Is CPP Invested In?

This was a fun question to ask, and it was quite nice to get a straight up answer. All the funds that CPP is invested in is made public on their website under the Our Investments tab.

What Has CPP’s Portfolio Performance Been Like?

To see what returns the CPP’s investment portfolio has been earning, check out the Our Performance tab on the CPPIB website. As shown clearly on their website, their 5-year annualized return has been 12.3% and their 10-year annualized return has been 8%.

Open Submissions for Guest Posts

Hello lovely podcast listener, do you have a money story to share? Well, first and foremost, you are always welcome to email me about being a guest on the Listener Series of my podcast. I’m always looking for new listeners to interview, so feel free to email me directly with your money story to apply to be on the show.

Does the idea of being recorded on the podcast freak you out? Maybe you’d be more comfortable writing a guest post on my blog. I’m currently accepting submissions from my podcast listeners (and blog readers, of course!) for guest posts. What I’m looking for is raw and real money stories that include failures, successes, lessons and advice and tips readers can absorb and learn from.

To apply, visit https://jessicamoorhouse.com/listenerguestpost

For full episode show notes, visit https://jessicamoorhouse.com/168