Over and Out?

Over the past few weeks, I've been looking up governmental support for retirees: Canada Pension Plan (CPP) and Old Age Security (OAS). They use rather fussy formulas but, in a nutshell, to maximize your earnings you need about 31 years of employment contributions for CPP and 40 years of residency for OAS . You can get a further boost if you wait until 70 years of age to collect. CPP is actuarially neutral (you get out what you put in, more or less) so you aren't really getting extra income from that source.

Of course, most people do not get the maximum amount for CPP. So that leaves retirement savings especially pension plans. Most people don't have the latter either. But for many living in Ottawa, since there are a large number of federal public service jobs here, they do have a pension. I couldn't find online sources about these plans. But for the (probably) comparable military pension, over a 35-year span (e.g., a 90-year-old veteran who retired at 55), it pays out at least 6 times the contribution amount made over a 25-year career. That's a nice nest egg on top of any private equity.

In my opinion, this is the only positive thing about living in Ottawa. Perhaps this is why my friends who never left all work for the federal government or the Canadian Forces. Yet in my family, almost no one from the older generation worked as a public servant. Looking back, this was the sort of life advice they should have received when we immigrated here. The younger generation is more clear-headed and does have government jobs (except the ones getting Silicon Valley money). In hindsight, having that pension does appeal to me but the idea of living here all this time does not.

Thoughts about retirement plans usually rattle inside my head when I'm out. This was no different when I ran some errands on Monday. At lunch, I stepped inside All-Out Burger, a new joint at Montreal Rd and St Laurent Blvd. The tables were full so I waited for one to clear up after I ordered an Original Combo ($14.25). The burger was rich and beefy but there was entirely too much fries. They were golden and crispy but I didn't make a dent in them. I would have preferred a smaller portion for a cheaper price. Overall, All-Out was much better than its neighbour Greek on Wheels. It might last awhile like Tropical Grill (now relocated to Orleans as Fishy's Original Jerk) and Dynasty Cafe (a decades-old greasy spoon that closed last year). But these businesses weren't in direct competition with the McDonald's location across the street.