Quote:
Originally Posted by WinnipegFan
I agree that you take some risk however, the teachers gave up their benefits that were tied to the plan years ago. They are on their own when they retire. A teacher that retired this year pulled 950,000 out invested it through her adviser in a LIRA and is making more per month than she ever would if she collected her pension and she has the capital. It is riskier but in my opinion the better option. The pension is not inheritable to your family there is a pay out to your spouse. The pension has taken some big hits, the largest being the loss of all benefits.
|
Yeah there are scenarios where it will work out, but there is longevity risk there. I have no doubt that for some people it can work out, but a blanket recommendation to just invest it on your own and maybe do better isn't responsible either. I would also say that it depends on what the people need to live on and what kind of lifestyle they want to live.