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by bparsons 58 days ago
Over the last decade (and even prior to that) CPPIB has been the best performing fund of its kind. National pension funds have different risk tolerances and investment guidelines that someone's personal portfolio or a family office.

Thanks to CPPIB, Canada does not have have a giant unfunded pension liability (unlike our neighbors to the south). It has been an enormous success story.
2 comments
sefrost 58 days ago
Yes, far better than how the UK runs its state pension system.

The Australians seem to have the best model overall though. Mandatory payments in to private investments has made them very wealthy.

The UK system takes the national insurance contributions of workers but doesn’t invest them in anything on behalf of the individual. So despite decades of payments you technically have nothing at the end and survive on the goodwill of the government and current taxpayers. That works right now because of the population pyramid.

Canada definitely has a better system than that.

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infinite8s 58 days ago
>The UK system takes the national insurance contributions of workers but doesn’t invest them in anything on behalf of the individual. So despite decades of payments you technically have nothing at the end and survive on the goodwill of the government and current taxpayers. That works right now because of the population pyramid.

That's how Social Security works in the United States as well.

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sefrost 58 days ago
I believe it’s tied to your earnings in the US though, which it isn’t in the UK.

I also have a number of qualifying years in the UK when I didn’t work, and for decades you could buy a year contribution for about £150. The payout is £12,500 per year.

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lotsofpulp 58 days ago
>That works right now because of the population pyramid.

Is it really a pyramid if the base is less wide than the top? I guess it would be an upside down pyramid, but not very useful for the intended purpose then.

https://www.populationpyramid.net/united-kingdom/2026/

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morepork 57 days ago
I thought that honour belonged to the NZ super fund with an annualised return of 10% before tax since it's creation in 2003. I couldn't find a comparable figure for the CPPIB, but it looks to be lower.

https://nzsuperfund.nz/

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