Redmud wrote: ↑Tue Jan 12, 2021 10:17 am
All this talk about pension got me thinking - I always wondered if aircrew who do the minimum years (not sure how many years that is) and then retire from the Forces in Canada start getting pension payments the day they leave, or do they first start getting pension payments after 65? I always wondered about that.
Thanx
Red
It's paid immediately. I did just over 20 years (old plan) and get $47352 per year for breathing. It is indexing in the background so when I hit 65 it will see a big jump and keep up with the published rate of inflation (indexed) after that. It really is gold. It's passive income for the rest of your life. If I dies first, the spouse gets 50% for the rest of her life. It's why I;m maxing out TFSAs before RRSPs these days.
You could take the transfer value. Mine was about $850000 IIRC. Unless you are a financial genius, you take the pension. In 18 years the TV gets exceeded by the value of that annual 47K.
Nowadays I think you have to do 25 years and the beancounters were ramping up the contribution rates that you had to make but it's still a DB pension. You don't think about it when you're 25 and just want to get laid again. Now, I am so very glad I stuck it out. I have zero financial worries. We live below our means and will soon be mortgage free. Once this medical panic is over and we can travel again, that will be the priority before we get too old.
There is lots of BS in the Air Force and more in the Navy IMO. If you can get past that, the $$ are not as high as a senior captain at AC, but the security is unbeatable. All those up and downturns? Never affected me. This one has but that DB pension has saved the day.