I'm not sure he federal government is the best place if you have a desire to retire early. That pension is definitely a set of golden handcuffs. Not sure how to link directly to a post but here's a bit more detail I posted in another thread. Note that I'm on the grandfathered pension plan though.
https://forum.mrmoneymustache.com/ask-a-mustachian/if-your-job-offered-a-pension/However, there are some other benefits to the federal government that help balance out the negatives - the biggest one is decent vacation entitlements. Being able to take 2 x 3mos and 2 x 1yr off without pay is a great benefit, especially when combined with decent vacation times and holidays, etc. that would help you get through.
Definitely max out your TFSA. I'm not saying this the best idea but if I was in your shoes I would definitely consider holding significant portion of high risk/high reward type investments in there. You're in a position where you can handle risk and have a long time horizon. No matter how much that money grows to, you don't have to pay taxes on it.
Also you could contribute to your RRSP to fund those leave without pay blocks, if nothing else. It would still be a good idea to have, because 35 years in the federal gov't is a long time and a lot could happen (for instance, our country could remain collectively insane and vote in Cons repeatedly over the years).
Another point is that the pension has a transfer value. Its value is magic, and you can't really work that amount into your financial plan. However, at some point it might be large enough to walk away with. A chunk of it will be taxable though, so it would be really helpful o have RRSP room at that point.
So, there are a few different approaches to take:
- Work to 60, taking as much time off as possible along the way.
- Carefully contribute to your RRSP, always leaving room for the pension transfer amount outside of tax limits. Retire when your RRSP + TFSA + Pension Transfer Value this your magic number, and manage your money yourself.
- Consider your pension entitlement at 60 as part of your overall plan, and save enough money in your RRSP/TFSA to a) cover your living costs from retirement age to 60; and b) top up your pension amount from 60 onwards. cfiresim.com is a good tool for helping figure this one out.
Another point worthy of mention is that if you are married, your spouse is only entitled to half of the pension. Factor that into your financial planning.