Private sector workers have to retire later -- and get less expensive benefits -- than civil servants and other public employees, the Canadian Federation of Independent Business is warning.

Ed Lander works in the public sector and is looking forward to ending his career -- at age 58.

"I think I'm in a fairly good position to take advantage of many more years of retirement," he told CTV News.

Since the late 1980s, employees like Lander have taken advantage of opportunities to retire early, the CFIB says.

The proportion of early retirees within the public sector was around 56 per cent in 2005, while in the private sector it was just over 33 per cent. For self-employed workers, only 20 per cent were able to take early retirement.

In the public sector, the average age of retirement is now 59, down from 62 in the mid-1970s. Private sector workers, on the other hand wait on average until 62.

Canada's self-employed individuals retire the latest, on average. From the mid-1970s to today, the average age of retirement for this group has remained stable at 66 years of age.

The CFIB says one of the key reasons for the disparity between public and private sector workers is a growing disparity between the types of pension plans being offered in both sectors.

While the private sector has been moving toward defined contribution plans, the public sector has stayed with defined benefit plans, which are generally considered more generous for employees.

"In researching this issue, it became obvious that those of us who work in the private sector will not have the same means to retire as our counterparts in the public sector," CFIB president Catherine Swift said in a statement.

"And to add insult to injury, we are subsidizing their retirement lifestyles."

For employers, defined benefit plans have become less attractive because of a mismatch between risks and rewards. The employer is responsible for funding the defined benefit plan, with or without employee contributions, and is also responsible for any shortfalls. Yet, employers cannot access or are constrained from accessing any surpluses in the plan.

"Stating it simply, Canada's pension predicament is one of fairness between the public sector and the private sector," said Swift.

"There is no valid reason why Canadian taxpayers are on the hook for public sector pensions plans when in fact half of the Canadians working in the private sector will not even benefit from any private pension plan upon retirement."

With a report by CTV's Graham Richardson