Is a pension alone enough to retire on?

Financial Post | Business

Financial planner and FP columnist Jason Heath helps readers shed light on everyday financial decisions. Send your questions to

Betty-Anne asks My husband will be 62 in June — he will have a government pension (he worked 17 years) — no savings due to a divorce three years ago — he is working in a very stressful job and we are thinking of early retirement. I am already retired at age 65 and I am collecting CPP and OAS. Will there be a substantial difference in his income when he retires?

Jason Heath responds Let’s look at the facts for Betty-Anne and her husband. He’ll have a government pension, which typically replaces 2% of earnings times years of service, so call it 2 x 17 = 34% of earnings in his case.

That’s certainly a big drop in his income, but if you add in Canada Pension Plan…

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