(NC) Every worker in Canada outside of Quebec between the ages of 18 and 70 who earns more than $3,500 each year contributes to the Canada Pension Plan. This means that roughly 19 million people contribute to and collect from the fund each year. But do you know how your contributions are managed to ensure they’re there when you retire?
Canada Pension Plan Investment Board manages the assets found within the CPP fund, from the time you start making contributions to when you start collecting.
Here are five important facts about your money:
1. The CPP fund is currently worth approximately $300 billion and is expected to continue growing for decades.
2. Deductions are made from each paycheque until the maximum pensionable earnings as set by the Canada Revenue Agency is reached. The funds not needed to pay current benefits are invested.
3. CPP assets are invested with the singular objective of maximizing returns without undue risk of loss to ensure that Canadians have a foundation for their retirement income.
4. CPPIB adopts a truly global perspective by investing in a broad range of asset classes from around the world. This includes everything from a large stake in the Canadian independent multimedia studio, Entertainment One Group, to numerous investments in real estate and infrastructure abroad.
5. The Chief Actuary of Canada, who conducts a financial review of the CPP every three years, projects that the Fund will grow to approximately $476 billion by 2025 and is sustainable for the next 75 years at current contribution rates. This means you can rely on your funds in retirement and for generations to come.
Find more information at www.cppib.com.