The CPP – good news and so-so news

Quarterly results for the CPP were released a few days ago, and show the value of our CPP to be at a record-high $170 billion. Between investment returns (about $3.1 billion) and the excess of our contributions over pension benefits paid out (about $1.3 billion), we have to be pleased with this result.

But I found it significant that, according to the sources, our excess of contributions over pension benefits paid will disappear in about nine years. The CPP Investment Board is therefore trying to increase the value of our CPP before the time when we start depending exclusively on investment returns to maintain our CPP.

Let’s hope they continue to do a great job in their investing.

Meanwhile, there is more writing than ever about whether we should apply for our CPP at age 60 (instead of, maybe, age 65). This decision is harder than meets the eye, and requires some careful thinking — about your health, Canadians’ average life expectancy, and your financial circumstances.

This ad appeared in the Richmond News on November 16, 2012.