Oddbean new post about login | logout @6bb26364 Actually, it represents a pretty normal approach to #valuation of #annuities and #pensions. The method is: if the #province had not joined #CPP, but instead maintained its own plan (like Quebec), had exactly the same #contributions as it did with CPP, got the same rate of return on #investment as CPP, minus everything paid out of CPP? The reports actually went further and discounted the value of those payouts to get the lower number, even though it's not in the formula.
@d2d6c993 a different interpretation suggests 16% is more realistic, including the potential risks involved. https://abpolecon.ca/2021/09/29/what-would-withdrawing-from-the-canada-pension-plan-mean-to-albertans/ #valuation #Province #Annuities #Pensions #CPP #Contributions #Investment