Why is it good to have some sort of pension plan?

I'm told that teachers recieve two pensions. I was wondering what they are and why it is good to have some sort of pension plan.

The pension gives a retired worker a monthly cheque to support his daily living when he/she no longer receives a monthly salary cheque.

The govt CPP gives a retired Canadian worker a monthly cheque based on his past working yrs and CPP contributions thru his wages. This may be in the neighborhood of $7000 per year.

In addition, many big employers like teachers and govt employees also have their employer's pension plan for employees. For govt employee, the maximum pension amount is 70% of the last 5 yrs average salary after 35 yrs working. For a $100,000 salary, that means a pension of about $70000/yr, ignoring the average requirement.

As u can see, this retired govt employee gets about $77,000 per yr (at least until age 65 when the govt pension will be reduced by the CPP received for federal govt employees only because of CPP/Govt employer pension integration), and that allows him or her to have a comfortable living.

Dont you think this is good?

Do you like money? It seems an odd question, why wouldn't someone like extra money when they retire?

Teachers, and many other workers at larger companies and government jobs, will indeed get two pensions. One is the CPP, paid to every Canadian worker on retirement, based on number of years employed and wages earned while working. Contributions are paid by each worker, as well as their company.

Some, but increasingly fewer, companies, and governments (teachers, for instance) also provide private pensions. These can often be very lucrative (much more than CPP), and are one of the sore points in union negotiations, since many union pensions have become so rich that they are a serious drag on the companies involved. Nevertheless, for the employees, they provide retirement incomes that allow a very nice lifestyle in the golden years.