Here's our situation; DW about to retire, guvmint/state job, 30 years of service, looking at buying the 5 additional years of service offered.
Formula is .0057184/mo or 6.8%/yr return (principal and interest); up to 3%COLA (my favorite thing); can get an extra $330/mo for $57k(plus change). Can use deferred savings from 457; think we've got plenty of funding avail with over $1.5M in deferred accounts, as well.
Seems to be a solid, 95% funded pension, this plus 80% of SS for us would meet all basic (and more) needs. The deferred is really living large money.
Whatcha think? Pull the trigger on the extra five years?
Thanks.
Formula is .0057184/mo or 6.8%/yr return (principal and interest); up to 3%COLA (my favorite thing); can get an extra $330/mo for $57k(plus change). Can use deferred savings from 457; think we've got plenty of funding avail with over $1.5M in deferred accounts, as well.
Seems to be a solid, 95% funded pension, this plus 80% of SS for us would meet all basic (and more) needs. The deferred is really living large money.
Whatcha think? Pull the trigger on the extra five years?
Thanks.