Easy Dmoney. That's putting everyone into the same pot. My husband is the most frugal guy around, hardly spends every penny along the way, and I will take his government DB plan all day long. Further to Square Roots comment 'what stopping you'? I can do the same (get a gov job), but our choice is to have one of us in the public sector and one in the private. We have his DB and we have my bonus'. Harmony.
Drive and ambition.
Originally Posted by Square Root
We can't all work for the public sector, anyone with an ounce of sense can see that.
I want to see how successful I can be and push my own limits. I don't want to settle. A cushy government job felt too much like settling to me.
Congrats on joining the ranks of Canadian Aristocracy!
Originally Posted by thebomb
I wasn't saying all gov. workers go out and spend every penny, just that they can. Is this a bad thing? Not at all. In fact the stability of government employees is in my opinion paramount to keeping our economy going. As a government worker, from day one, you know how the remainder of your life is going to play out. Start at $XX,XXX/year salary, follow the pay grade up to $XXX,XXX in year 35. Retire and receive 70% of last 5 years' pay. A financial planner's wet dream.
Originally Posted by thebomb
I was simply pointing out that a government worker never has to save their first million, because on retirement, their pension is valued well over this amount.
I really don't want to come across as critical of government workers here. They are just playing the game, the same way the rest of us are. The problem is with the game here, not the players.
@dmoney. if you didn't want a gov't job because it felt like settling, why would you criticize the compensation of those that felt differently? Seems like you want it both ways?
I haven't criticized the compensation of government workers, in fact I expressly avoided it in order to derail this thread somewhat less.
The way I see it is that all public sector workers are millionaires, but very few are multi-millionaires. I see the public sector as a very low-risk, surefire way to be a millionaire. So, in a discussion in the "retirement" section, I value a million-plus dollar pension in the same way as a million-plus dollar investment account. Two different ways of getting there.
I personally chose (keep in mind I'm only 23 and things can and do change) to take a great private sector opportunity that pays me substantially more than I would receive were I to work in the public sector. This opportunity came at the expense of job security, free time, pension and staying in my home town. If my career progresses the way I hope, I will be a millionaire many times over, something that can not be attained in the public sector. I went the risky route, hoping for more, and I'm happy with my choice.
Do I wish that public sector compensation was lower? Not really, since it wouldn't result in a commensurate decrease in taxes. The savings would just be blown by government elsewhere.
Do I think that public sector workers are well paid? Absolutely.
Am I jealous of public sector pay? Not at all.
Do I think that the guy sweeping a factory for $12 an hour and paying $125/month for a transit pass should be livid that a TTC worker sweeping a bus is making $28? Absolutely. Does it bother me? Not at all.
I definitely think the broader public sector needs to appreciate where the average worker is coming from when they complain about gov. compensation. The average worker is not nearly as well off as the public sector worker, has no benefits, no pension, no savings and pays an ever-increasing proportion of their paycheque to fund the compensation of gov workers. I can definitely sympathize with their argument.
In the end life goes on, we're all going to get where we're going, we'll just go about it in different ways.
Square Root: What do you mean by want it both ways?
I never had a government job and my DB pension is worth over a million I'm living on it now.
We all make choices along the road I watched many fellow employee's quit in my 30 years with the company.
Did it make sense to me NO but it is up to them. Follow your dreams and take responsibility for the result there are many things that can change a persons game.
There are no cushy jobs all require commitment government or private sector, I've yet to see a job that does not have strings attached.
Dmoney: You think it was settling so you didn't want a gov't job then you want those who take such a job to be paid less for it. Sounds like tails I win, heads you lose?
I am in a career that will never lead to a pension. I wish I had understood that when I was making career decisions in high school.
I don't want them to be paid less for it (unless of course by them being paid less, I am taxed less, which is never the case)...
I want public sector compensation to be reduced in the same way I want the price of bread, cars, beer and cell phones to drop. Not because I hate bakers, auto companies, brewers or Apple, but because I'm better off if the cost of these items are reduced.
If the job could be done with less workers, or lower wages, and the full savings was delivered to taxpayers, then yes, I would love to see wage cuts.