Quote:
Originally Posted by GGG
You too could have a similar pension plan to a teacher if you saved over 20% of your salary each year. The government does give them a 9.5% contribution which is much better than the private sector generally but it’s not obscene like people make it out to be. Teachers contribute about 10.5%
https://teachers.ab.ca/news/teacher-...-rates-lowered
20k per year with an average historical return of 7% after inflation for 30 years from 25-55 would score you 2 million dollars.
The reason teachers have good pensions is they are forced to save. |
Yeah, and it depends on your situation, but I was in no position to save $20k/year at age 25. I didn't make enough money even to consider that.
There's no question that forced savings and compound interest are why those pensions are good. That's not unique to teachers; many DB plans have those factors working for you.