Quote:
Originally Posted by heep223
Plus he's wrong. AIMCO manages the public pension funds in Alberta and they do a terrific job. Maybe he pulled the 2011 return and used it to suit his argument? Quick google search for the last 5 years of returns (net of fees):
2015: 9.1%
2014: 9.9%
2013: 12.5%
2012: 10.2%
2011: 4.8%
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Sorry when I was referring to the return I meant the amount a teacher receives in pension pay not the market returns. That was my miscommunication. The fund manager does a wonderful job. However, when a teacher retires they only receive a part of their pay and that amount comes to ~4% of the capital they have in the fund. I agree that as teachers live longer they pull more from it. However, with the capital amount they have in the fund it will easily provide the small amount they pull from it as a pension while leaving (take 2015 data you provided) 5.1% staying in the fund. So the capital that teacher was responsible for will easily support them through their retirement.
Not an adviser.