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Originally Posted by Sliver
Well, not everyone. I don't (self employed).
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Only if you earn your money through dividends, capital gains, or something like that. Any salary paid from a corporation to its owner and any business income from a sole proprietorship is pensionable money, except you have to pay both employer and employee shares in that situation. I'm self employed too, but I have to pay almost 12% of my net business income to CPP.
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I'm not disputing most people get CPP and OAS, but it's just worth point out that teachers will be living off 70% of their income since that's the relevant number required to plan your life around.
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Sure, but if 25 of the 70% is coming from something everyone is statutorily entitled to, then it's kind of irrelevant. The point being, if anyone devoted 10-12% of their gross salary to investments for 30-35 years like everyone in the pension plan has to, they'd be able to withdraw a pretty significant portion of their working income level as well without any real risk. The employer matching definitely makes it a good deal for teachers, but people talk like the pension is free money, when it's really just a few percentage points higher matching than most other professional jobs offer.
And if people without work pensions really want security, they can always just buy an annuity. For a 55-60 year old to get $50K a year for life, they'd need to contribute about $1M to an annuity. That's a lot of money, but not particularly crazy if someone contributed 10-12% of a teachers' salary to investments for 30-35 years.