Tuesday, January 31, 2012

Life Sentence


I got a United Church pension fund last week which told me that I would be required to pay more as a percentage of my income to keep the fund afloat. Well, I don't think it's entirely up to me. I figure everyone in the fund got the same letter. We had been forewarned about this, so it was no surprise. And since I have been paying into the fund for 32 years, along with the congregations I have served, I will simply sigh and "pony up." I'm counting on the vast wealth of my pension to keep me in the lap of luxury in my dotage.
In the same week my Prime Minister intimated that it will be similar for our government pensions. In fact, we may have to toil a couple of years longer in order to collect on those pensions. For many people that will mean working longer before receiving government pension benefits because they can't afford to retire without the government benefits. More years working? I don't wanna! I mean, I love you folks from congregations past and present and much of my vocation I find deeply meaningful. But I don't want to do this forever and you probably don't want either, even though you may love your work.
For me it is the prospect of working weekends forever and ever, Amen. At sixty five I will have spent 40 years in pastoral ministry, expecting those near and dear to me to work around my weird schedule. There just aren't many clergy who put in that many years before retirement. Even my late father and father-in-law didn't come close to that number of years in ministry because they were war vets and began in their thirties. Forty two years? Think about it. Moses got pensioned out after forty. Okay, he died, but you understand what I'm saying.
It's hard to imagine the alternatives. I'm breaking into a cold sweat thinking about the Walmart greeter and shopping cart guy we saw in Colorado last summer. He was so frail he walked with a cane, but he was putting his shoulder into his work. Yikes.
Do you young 'uns think much about the Golden Years? Does this change your thinking about the meaning of employment? Are you nervous?

3 comments:

IanD said...

You bet your collar I do! That's why I try and throw every penny I have in the bank now while I can!

Realistically, I expect most western countries to eventually up their retirement age to at least seventy. Given medical advances, and the fact that people are living longer and longer, it only makes sense. People's lives are oustripping pension plans that were originally designed during more modest times, and for an expected longevity of roughly seventy years.

What used to be a fifteen year window for active pension collecting has been upped to almost twenty five years! Unless changes are made, many pensions will run dry before their time.

Personally, at thirty-four, I don't expect to ever see my CPP contributions. My teacher's pension is excellent, but there again, I expect contribution rates to increase with more and more frequency over time, and the thing's already been de-indexed for inflation. As a result, I expect that even though I'll be able to retire at 54, it will be more like 65 when the time comes.

That'll be 41 years in front of your kids, folks. I had better keep hitting the gym so I can keep up with them!

dmy said...

David, your blog reinforced something I had been thinking of since Jan. 1, 2012... possibly because a milestone birthday is on the horizon. As of June I will have been in the workforce full time 41 years (except for 3 months at home when each child was born, a total of of 6 months)so still 40 years this month. Looking back I would have it no other way and I have no regrets. However, I rarely work weekends as you do and that is a whole other story. There are days when getting up at 6a.m. to make a meeting across the city is not my favourite way to start the day or week but I also feel the variety and opportunities I have had over the years outweigh the alternative. I see a Walmart Greeter and think that could be interesting - but maybe not and if working another 3 or 4 years and contributing to my pension along the way is a choice I have then I am happy to have that choice. I often wish I had the foresight as Ian does to sock away more than I did but again we thought our Company pensions and government pensions would be adequate and this is not the case for many. They do say 60 is the new 50 and I am counting on that and the opportunity to contribute as long as I am able. Many people my age have taken the lemons (working longer than planned) and made lemonade with them. Good luck to the next generation and their retirement goals!

David Mundy said...

Good plan on your part Ian. Counting on the Old Man for a big inheritance probably isn't a healthy idea -- he looks like he's having too much fun!

Very positive outlook dmy. When the government pensions were introduced the age for receiving them was 70 and the average age of Canadians was just under 70. Now the gap between receiving pensions and being "promoted to glory" is approaching 20 years. My own mother worked until age 77 and loved it.

Thanks to both of you for excellent responses.