The Canada Ponzi Plan

Defined-Benefit Pensions Are Antiquated, Inherently Unstable

This is Chapter 4 of Financial Sovereignty for Canadians: Untether Yourself from the Ottawa Leviathan.

There has been an unexpected silver lining to Alberta Premier Danielle Smith’s pursuit of a provincial pension system, proposed by her in fall 2023. The messiness of the potential departure from the Canada Pension Plan (CPP), which already excludes Quebec, has laid bare that the CPP is a pay-as-you-go Ponzi scheme. Even CPP apologists and administrators admit recipients depend not on their investments and returns but on fresh taxes paid by newcomers.