Quote:
Originally Posted by Locke
Dude. Where do you hear all of this? My best friend works for CPP and tells me that its well funded and performing admirably.
I thought Slava did an a good job of explaining how pension funds are managed.
As far as I understand CPP is good to go for quite some time.
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The CPPIB is well run and cpp is well funded. But the REASON it's well funded is that everyone whose working career is post-1990 is paying for their pension and someone else's. Those who worked prior to that voted themselves pensions without paying for them, so now we get to pay for ours and theirs as well.
It isn't really a "return" issue, although if you add up your expected contributions and expected payments over your lifetime it's around 2%. A more accurate way of looking at it is that cpp gets good returns but the first big chunk of your money goes to paying for previously unfunded pensions.