During those years you’re not collecting, the investment and inflation risk is the government’s issue, not yours. CPP payouts are inflation-indexed. So, if we get periods of high inflation, your expected payout keeps pace. These payouts are also formulaic based on past contributions to the...
Because some folks pass before others, that’s what allows the payouts to be as high as they are. That’s what shared risk is all about. Once you’ve internalized that your CPP “account” isn’t a private asset, the way CPP Survivor Pensions work makes a bit more sense. Here’s ...