Canadian Pension Plan Depleting?

Here in Canada there is a lot of talk that the Baby Boomers will use up the Canadian Pension Plan leaving nothing left for the next generation. Can someone explain this? I think that as long as the average birth rate is sustained slightly higher than 2.0 per couple the CPP shoud be able to sustain itself. ie: the more baby boomers = the more baby boomers babies. Unless these funds have been mismanaged somewhere along the line (which I would presume to be true).

Canadian Pension Plan Depleting?
The birth rate is important in the long-term, but there are other complicating factors which are weighing on the CPP.





One of the major ones is the fact that Canadians are living longer and longer. An extra 5 years of life for everyone under the plan throws out the actuarial assumptions which the plan was based on... by a lot. (5 years @ $20K for millions of people)





Another factor is that CPP was never funded sufficiently for people to solely rely on. That is to say, the baby boomers themselves weren't forced to put enough into it to cover their retirements.





These days, for younger generations, the shortfall is being made up with RRSPs and other investments. For baby boomers, often a mortgage is the only way to supplement the shortfall.

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