(NC) Amid an uncertain economic outlook affected by the global pandemic, many of us have our finances top of mind. But as we focus on paying essential bills, it’s easy to forget about saving for retirement.
In times like these, it helps to know that Canada Pension Plan Investment Board, or CPP Investments, the organization that manages the $409 billion fund in the best interests of more than 20 million Canadians, has a solid track record.
The organization invests the money not needed to pay current CPP benefits with a goal of maximizing returns without taking unnecessary risks.
Over the last 10 years, the fund has delivered an annualized net return of 9.9 per cent. These returns are driven by careful decisions made over the years to invest in financial services, renewable energy and companies undertaking cutting-edge medical research.
This long-term investing strategy focused on diversifying investments helps keep the fund from being too dependent on returns from any one country or sector. Strong, consistent risk management is key.
To help put your mind at ease, in 2019, the Office of the Chief Actuary of Canada released a report confirming that the fund was sustainable for the next 75 years, based on legislated contribution rates for both the base and additional portions of the CPP. The fund will be there for Canadians for generations to come. (Source: News Canada)