Alberta contributed $53.6 billion more to the Canada Pension Plan than its retirees received between 1981 and 2022, according to a report published Wednesday by the Fraser Institute.
That figure is more than six times higher than the next-largest net provincial contributor, and highlights a long-standing imbalance between what Albertans pay into the national retirement program and what they get back.
“Albertan workers have been helping to fund the retirement of Canadians from coast to coast for decades,” said Tegan Hill, director of Alberta policy at the Fraser Institute and co-author of the report. “Canadians ought to know that without Alberta, the Canada Pension Plan would look much different.”
The report found that while Alberta workers accounted for an average of 14.4 per cent of all CPP contributions during the 41-year period, retirees in the province received just 10 per cent of the payouts. The result is a significant net transfer from Alberta to other regions of the country.
Only one other province—British Columbia—also paid more into the CPP than it received in retirement benefits, but its net contribution was one-sixth the size of Alberta’s.
The disparity is largely driven by Alberta’s younger population, higher average incomes and strong employment rates, which generate higher payroll tax revenues for the federal program.
Hill said that, given current demographic trends and Alberta’s history of economic growth, the province will likely continue to pay more into national programs like the CPP than it receives in return.
The Fraser Institute’s report comes as debate continues over the future of Alberta’s relationship with national programs. Premier Danielle Smith’s government has explored the idea of withdrawing from the CPP and establishing a provincial alternative, arguing Albertans could receive comparable retirement benefits at a lower cost.
The report suggests such a move could reduce payroll taxes for Albertans while requiring higher contributions from workers in other provinces to maintain benefit levels.
