Letter to the editor – Canada Pension Plan


Dear Editor,

The Canada Pension cheque is now (or soon will be) referred to as a “Federal Benefit Payment”? I am forwarding it because it touches a nerve in me; and I hope it will in you.
This isn’t a benefit. It is our money, paid out of our earned income! Not only did we all contribute to our pension, but our employers did too. It totaled 15% of our income before taxes.

If you averaged $30K per year over your working life, that’s close to $180,000 invested in your pension. If you calculate the future value of your monthly investment in a pension ($375/month, including both you and your employer’s contributions) at a meager 1% interest rate compounded monthly, after 40 years of working you’d have more than $1.3+ million dollars saved!

This is your personal investment. Upon retirement, if you took out only 3% per year, you’d receive $39,318 per year, or $3,277 per month. That’s almost three times more than today’s average Old Age Pension benefit of $1,230 per month.

And your retirement fund would last more than 33 years (until you’re 98, if you retire at age 65)! I can only imagine how much better most average-income people could live in retirement if our government had just invested our money in low-risk, interest-earning accounts.

Instead, the folks in Ottawa pulled off a bigger “Ponzi scheme” than Bernie Madoff ever did. They took our money and used it elsewhere. They forgot (oh yes, they knew) that it was OUR money they were taking.

They didn’t have a referendum to ask us if we wanted to lend the money to them. And they didn’t pay interest on the debt they assumed. And, recently, they’ve told us that the money won’t support us for very much longer.

But is it our fault they misused our investments? And now, to add insult to injury, they’re calling it a ‘benefit’, as if we never worked to earn every penny of it. Just because they borrowed the money doesn’t mean that our investments were a charity.

Let’s take a stand. We have earned our right to our pensions. Demand that our MP’s bring some sense into our government. Find a way to keep Canada Pension going for the sake of that 92% of our population who need it.

Then call it what it is: Our Earned Retirement Income”.

Rick Rain


  1. What nonsense is this, and why would NG Times print it? CPP is handled and invested by an outside entity (CPPIB), with the contributions going nowhere near general revenue. It is sustainable for the next 75 years with average return rates of 3.75%. Mr. Raines’ calculations and ROI projections are nonsensical and disingenuous; the reason CPP exists is because people can’t/don’t invest at all.


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