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A look at one of Canada’s oldest DC pensions through the eyes of a 100-year-old retiree

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Earl Martin:

What’s not mentioned in the article is that when this fellow retired in 1982 is that the annuity he would have purchased would have been at very high interest rate (15-20%) which is why he has been able to draw so much for so long. Not really relevant to today’s situation.

Tuesday, September 12 at 11:55 am | Reply

joellfrank:

The 100 year old gentlemen is receiving an annuity income rate of 16.36 percent per year for the remainder of his life. This purchase was made at age 65.

With that said, the NYC Employees Retirement System guarantees a rate of 10.6 percent for a 65 year old retiree.
Where does the additional income come from? Surely not from the investment holdings. It appears that this 100 year old retiree is the recipient of a subsidized rate. Please clarify this important observation.

Tuesday, September 12 at 12:42 pm | Reply

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