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Canada’s two-tier retirement system

This study examines the differences between public and private sector retirement benefits.

The report follows two fictional workers with similar roles and salaries from when they begin their careers. By the time they both retire at age 65, the public sector worker will receive more than double the benefit - $605,000 over 20 years for the private worker; and $1.38 million over 20 years for the public worker. The report looks at the reasons behind the more-than-$700,000 gap, including the defined-benefit formula that guarantees the public sector worker her benefits.