Thursday, May 19, 2011

CPP feeding frenzy comes to an end

CPP feeding frenzy comes to an end

And the Ponzii scheme keeps underperforming...

Over the past five years, the fund has generated an annualized rate of return of 3.3%, while the 10-year rate of return is 5.9%.

Mr. Denison said the 10-year annualized rate of return has recovered to a level consistent with the 4% real rate of return incorporated by the Chief Actuary in the latest report confirming the sustainability of CPP.

"We remain confident that we have designed the mix of assets within the CPP Fund so that it is well positioned to achieve the 4% real rate of return required over the longer term," he said.

It's really too bad that the CPP can't be voluntary... there's no reason for any investment portfolio to make only 4% over 10 years, even taking into account the recent financial problems.


  1. Check the numbers - that is inflation adjusted and blows away the benchmarks on a 5and 10 yr horizon.

  2. While the numbers look good, you as a (future?) recipient don't see an extra dime.

    YOUR actual rate of return depends on the amount of benefits you receive when you start collecting, and for an average individual without taking into account a spouse, your rate of return, even if you die at age 100, is a non-inflation adjusted 4.8%.

    I will repost my analysis on the weekend, but long story short, I can find a much better place to put my money that fully benefits me than the CPP.