Is Canada Pension Plan (CPP) safe?

As Canada's population ages and life expectancy increases, more and more people are asking the question: is the Canada Pension Plan (CPP) safe?

There are many factors to consider when trying to answer this question, but ultimately it comes down to three things: the health of the Canadian economy, the solvency of the CPP, and the political will to maintain the program.

The Canadian economy is currently in good shape. GDP growth was strong in 2021 (increasing by 4.6%), unemployment is low. This is good news for the CPP, as a strong economy means more people are working and contributing to the plan.

The CPP is also in good financial shape. It has a large asset base and a diversified investment portfolio. The plan is currently running a surplus, and is projected to do so for the next decade.

Finally, there is strong political support for the CPP. All major parties have pledged to maintain the program and make sure it is sustainable for the long term. However, some provinces (other than Quebec, who has their own Pension Plan) are looking to establish their own program e.g. Alberta.

So, is the CPP safe? Yes, it is. The Canadian economy is strong, the CPP is financially sound, and there is political will to keep the program going.

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Always seek advice from your financial planner. If you are a member of one of the BC Public Sector Pensions plans, you can see what the Pension Corporation says about your situation. Their pages provide a detailed summary of your options.