Editor: Re: Thinking of retirement, (The Times, March 9). I am writing to correct a comment in your editorial.
In writing about whether Canadians will have enough money to retire comfortably, the editorial states:
“… there are doubts whether the national pension plan itself (the CPP) can survive the approaching huge bubble of retiring baby boomers.”
In fact, federal and provincial policy makers successfully reformed the CPP in 1996-1997 so that it would be sustainable for generations. Canada’s Chief Actuary published a report in November, 2010 reaffirming that despite the projected substantial increase in benefits paid as a result of an aging population, the CPP is sustainable throughout the report’s 75-year review period, at current contribution and payout levels.
The CPP Investment Board manages the assets of the CPP not needed to pay current benefits. It currently has assets of $140 billion, which are projected to grow to $275 billion within the next 10 years. It will be 10 years before even a small portion of the CPP Fund’s investment income will be needed to help pay pensions.
Canadians can be assured that the CPP will remain the foundation of their retirement security.
Linda Sims
Director, Media Relations
CPP Investment Board
