If I invest my meager RRSP in the market and the market crashes, I can lose my entire pension savings. With limited funds, someone like me cannot diversify to the same degree the Canada Pension Plan can. A fund as large as CPP is not at the same mercy of the market as an individual investor would be because not only do they have the ability to diversify, they have the advantage of being able to wait out dips in the market.
But the Canada Pension Plan is based on the stock market - go look it up. I cannot provide the direct link because Youtube does not allow URLs in comments. Google "Canada Pension Plan Investment Fund". Darned near the whole thing is invested in the markets, which basically negates your entire premise.
If I invest my meager RRSP in the market and the market crashes, I can lose my entire pension savings. With limited funds, someone like me cannot diversify to the same degree the Canada Pension Plan can. A fund as large as CPP is not at the same mercy of the market as an individual investor would be because not only do they have the ability to diversify, they have the advantage of being able to wait out dips in the market.
LustiLisa 1 year ago
But the Canada Pension Plan is based on the stock market - go look it up. I cannot provide the direct link because Youtube does not allow URLs in comments. Google "Canada Pension Plan Investment Fund". Darned near the whole thing is invested in the markets, which basically negates your entire premise.
alanmckay 1 year ago