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Originally Posted by WinnipegFan
Here you are simply incorrect. The pension that an average teacher gets will never come close to the true value of what they put into it. I recommend all teachers pull their pensions when they can and invest it for themselves. The return on the money the teacher has put in 30 years down the line is only 4% however any regular investor can achieve at least 6% return. This also allows the capital to remain in your hands and become an inheritable asset. If you simply collect the pension you would have to live a minimum 20 years just to get the capital back you have put into the fund not accounting for the compound growth now for 50 years. This is why teacher pensions plans get astronomically large, the teachers actually don't get back what they put into it and the capital these funds have grows exponentially.
This is why when you go to any mall in Calgary you are actually supporting the Ontario Teacher's retirement fund. They can afford to own Cadillac Fairview and at one time the Maple Leafs and Rogers Centre.
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I'm a financial advisor married to a retired teacher. This is bad advice.