Retiring before the age of 65 might seem like a pipe dream for the average Canadian worker, but every day, many Canadians with “regular jobs” are able to retire at least a decade early, thanks to a combination of high earnings, diligent saving and investing, and generous pension plans. Here are just ten of the types of jobs that let you retire early.
Canadian politicians make decent coin, ranging from a starting salary of $163,700 for a Member of Parliament to $327,400, the salary of our current Prime Minister, Stephen Harper. Politicians can also look forward to a lucrative pension plan, which grows the longer you hold your seat.
2. Government worker
The salaries and benefits of public sector workers have come under much scrutiny in the past few years. And it’s no wonder; two-thirds of private sector workers don’t have a pension plan at all, while public workers are earning generous pension plans with early retirement options that pay up to 70% of their last salary.
3. Investment banking/high finance
When your starting salary as first year investment banking analyst tops six figures, including bonuses, it’s fair to say to say that you may have found clear path to early retirement…assuming you can control your expenses.
4. Business consultant
“Business consultant” seems to be a catch all term these days, spanning every specialty and industry. If you have the education, experience and knowledge to help organizations with their strategy, then you could probably charge at least $200 an hour for that expertise, allowing you to either quickly save a decent nest egg, or work part-time.
5. Start-up employee
Joining or founding a start-up that becomes the next Google (or is acquired by Google) is rare, but when it does happen, it’s like winning the lottery.
After 10 years of service, the lowest amount an Ontario teacher can make is $76,021 and across Canada, school teachers seem to be well-compensated for shaping the minds of future, but what makes this such a lucrative profession, at least in Canada, are the powerful pension plans (are you beginning to see a pattern?). For example, the Ontario Teachers’ Pension Plan pays its retirees 70% of their top earnings, plus teachers can begin claiming their pension starting at 53 years old.
7. Business owner
I’ve probably asked a dozen millionaires how they’ve gained financial independence so early in their lives and they all say the same thing: start a business, grow it, then sell it (or let others run it for you).
Over the years, there have been numerous reports about the staggering amount of firefighters that crack the $100,000 a year salary. Add to that a powerful union negotiating regular wage increases and excellent benefits, and it becomes clear why firefighting is a retire early-type of job.
9. Police officer
Canadian police officers are not only among the best paid in the world, they receive excellent benefits and a generous pension plan, allowing them to retire after 25 years of service, at around 50 years old.
A job that offers sky’s the limit-type commission incentives will be great for those who are excellent at sales. If you’re good at convincing others and are passionate about the product you’re hawking, you could quickly grow your income to rival other top-earning jobs, which means more opportunities grow that nest egg.
Over half of the top careers that compensate well enough for early retirement are some form of public sector work, where it’s more “putting in your time” and then receiving a healthy pension. The other half of the list consists of private sector roles with the potential for large salaries, but leave retirement planning almost entirely in hands of the individual.