Putting Some Gold in the Golden Years: Fixing the Canada Pension Plan

Summary:
Page Title:Putting Some Gold in the Golden Years: Fixing the Canada Pension Plan – C.D. Howe Institute
Article Title:Putting Some Gold in the Golden Years: Fixing the Canada Pension Plan
URL:https://cdhowe.org/publication/putting-some-gold-golden-years-fixing-canada-pension-plan/
Published Date:January 1, 1996
Accessed Date:February 18, 2025

Canada’s government-run income pension system, made up of the Canada and Quebec Pension Plans (CPP/QPP), is run on a pay as you go basis. With only minimal prefunding in the CPP account, the CPP is a Ponzi scheme in which the benefits of each cohort of participants are paid from subsequent cohorts’ contributions. Pay-as-you-go plans have serious economic and political flaws. This study makes three recommendations on how policymakers can meet these challenges.

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