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There are some calculations with pension plans that require advanced math, and some that don’t. One that doesn’t is the simple fact that Canadians are rapidly aging.

The average age of the population is moving up as life expectancy increases, birth rates decline and the baby boomer generation ages. By 2040, 25 per cent of the population will be at least 65 years old, up from 17 per cent today, according to Conference Board of Canada projections.

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The impact of having fewer Canada Pension Plan contributions from workers and more payments going out to beneficiaries is also straightforward: Either workers contribute more or beneficiaries get paid less.

“That’s where immigration plays into it,” said Keith Ambachtsheer, director emeritus at the International Centre for Pension Management. “We need immigrants for a lot of reasons, but one of them is to become future contributors.”