Quebec's $288 billion pension manager will soon have more money flowing out in payments than it will receive in new contributions, a situation that may force it to reduce investment risk, its chief executive officer said.
"We will reach a tipping point," Charles Emond, CEO of the Caisse de Depot et Placement du Quebec, said during remarks Monday at the Canadian Club of Montreal. "We'll arrive in 2024, for the first time in our history, in a situation of net withdrawal."
The trend is driven by an aging workforce: Quebec has the oldest population of Canada's four largest provinces, with a median age of 43.2 years, according to a 2021 census. It has taken a more restrictive approach to immigration, capping the number of newcomers in an effort to protect the French language.
The gap between benefits payments and contributions will initially be small, Emond said, so the Caisse should be able to keep growing assets through investment returns for years to come.
"Risk capacity, willingness to take risks, will be lower in future years, but our clients are managing this," Emond told the audience of close to 800 people. The Caisse manages money on behalf of 46 different groups — including the Quebec Pension Plan — and they have more than enough to meet their future obligations, he added.
CDPQ, founded in 1965, had C$392 billion ($288 billion) in net assets under management as of June 30.
