The Canada Pension Plan is financially sustainable, according to an actuarial report.

The results contained in the report confirm that the legislated contribution rate of 9.9% for years 2010 and thereafter is sufficient to pay future expenditures and to accumulate assets worth $235 billion—5.2 times the annual expenditures—in 2015.

“The retirement of the baby boomers will create upward pressure on the plan outflows as part of the investment income will be required to pay benefits since contributions will not be sufficient to cover benefits,” states the report. “However, assets are projected to continue to grow until the end of the projection period, but at a slower pace. The asset/expenditure ratio is expected to reach a level of 6.0 by 2050 and 6.4 by 2075. These are indicators that the plan is sustainable over the long term.”

The report also points out that by 2050, there will be 9.6 million beneficiaries compared to 3.5 million today. And for the first time, in 2007, there are more female than male retirement beneficiaries.

This trend is expected to continue and by 2050, there will be about 650,000—or 15%—more female than retirement beneficiaries.

To read the actuarial report, click here.

To comment on this story, email craig.sebastiano@rci.rogers.com.

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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