How much retirement income is needed?

The debate over double dipping teachers has raised some valid points. In the Toronto Star there was an article about this Canadian teachers and their fat-cat pensions


How much is sufficient retirement income?
Consider this:

1. A public sector pension valued at $40,000 a year would require you or I to have a RRSP or pool of money set aside of about $640,000 to cover this amount of income. How big is your RRSP? 
2. The $40,000 does not include the CPP that a public sector employee will earn. This is another $11,000 per year.
   
3. The target on a public sector is 70% of income. This year the highest earning teachers will retire with an income of $95,000 generating a $66,500 pension including CPP. The $40,000 that the OTTP sends out includes teachers who have been retired for 30 years or more. A more accurate number would be what is the average new pension this year?
   
4. The average working Canadian earns a little over $40,000 per year.
   
5. The single largest expense for Canadians after taxes is the cost of housing. In Canada 85% of seniors over 65 have their home mortgages paid off. In the higher income groups it is probably larger. This in itself is a 30% reduction in the cost of living.
   
6. There are dramatic reductions in the cost of living for retirees. They pay no more CPP contributions 4.95% of YMPE income. No more EI premiums, cost of clothing for work, transportation and lunch allowances.
   
7. The average Canadian has an RRSP value of $25,000. 
8. Finally on the issue of fairness the public sector employee will have paid  a contribution of between 7% to 9% for a 70% pension. A self-employed person will have paid 25% of income for a 25% CPP pension.