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Canadian Ponzi Plan

 

The Canada Pension Plan Fund took a hit in the fourth quarter. March 31st quarterly results: $407.3B from $419B at Dec 31st. Almost totally ignored by media - which reported annual return (3.1%).

Would not want to upset the kids! When reporting 3rd quarter results, media was exuberant – touting a 3.6% return for the quarter!

Still a nice chunk of change - the same as one Province's debt.

Ontario is expecting a $41B Operating Deficit (+ capital) which would put the Provinces debt at about the same amount - easily over $400B.

CPP Premiums are increasing. Every year. Trudeau upped workers and employers contributions - instead of upping retirement age one month per year as Conservatives suggested to reflect longer lifespans since 1965.

Canadians have been one of the world's worst in contributing to social security. Yet only solution is young people pay more - benefits are never decreased.

A $55K a year sole proprietor will pay over $300 more this year - about the same next year and so on, and so on.... see chart. Employers match employee contributions.

As with all Ponzi Schemes - if you get in and out early you are rich! Slow to the party? Young people can expect a 1% return. Maybe.

Obviously, the solution to a Ponzi Scheme is to start another. These "distinct" funds of "enhanced" CPP will surely be merged when original runs dry.

The US Social Security Fund runs dry in about 11 years (similar demographics).

Best to wrap up these funds and let young people save for their own retirement.