A brave soul takes on CPP doubters

Part of being a smart skeptic is being able to recognize that some things are actually what they seem.
The Canada Pension Plan is an example. Once you retire, the CPP pays a monthly benefit for as long as you live and adjusts that amount each year for inflation. The CPP has been certified as healthy for the next 75 years by actuaries, who can best be described as the engineers of the financial world. When they stress test something, you can be confident it was sliced, diced and julienned.
The CPP has its doubters, though. For a full summary of their thoughts, check out a recent thread on the social media platform X that was initiated by portfolio manager Ben Felix. Mr. Felix is the chief investment officer at PWL Capital and has an interest in helping to educate people about money and markets.
In a calm and informational way, Mr. Felix addresses the many concerns people have about CPP. He explains that it’s financially healthy, which means it can be relied on when you plan for a retirement many years down the road. He points out that CPP assets are separate from federal government revenues and thus off limits to finance ministers scavenging for money. He also notes the CPP’s annual inflation adjustments, which help you maintain purchasing power in retirement.
Mr. Felix also acknowledges the limitations of the CPP, notably that benefits will not on their own be enough to support people in retirement. CPP recipients will likely have Old Age Security benefits as well, but additional savings and/or a company pension may also be needed.
A skeptical mind is a huge asset in managing your finances. Be a doubter in situations like these:
It’s fine to be a CPP skeptic as well, but don’t close your mind. As Mr. Felix points out, the CPP is actually what it seems. It works.
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