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My pension is going to be a pittance. $349.20 per month at the age of 65. This was for the 7 years I put in at a company that offered a pension. I was in long enough to get vested. But since then, I haven't worked for a company that offers a pension.
Anyway, playing around on their website, it looks like I could start collecting a reduced amount at the age of 62, $286.34 per month. So I clicked off two age brackets. Also, doing the math, I calculated that the breakeven point of taking the reduced benefit at 62 versus the full thing at 65 is when I'm around 78 years and 7 months!
Either way, I don't think it's indexed to inflation, so by 2032 or 2065 it's going to be inconsequential. At least, every time I've gone back to the retirement website and run the calcuation for my benefit estimate, it's stayed at $349.20. If it were indexed to inflation/cost of living, it should have gone up since I quit back in 1999!
My DW and I both have two pensions we can begin collecting as early as age 55 (4 years away for me, 5 for her). *If we take them all as early as possible, we've estimated that the pensions would cover about 25% of our annual living expenses 5 years from now, then deteriorate from inflation since none of the pensions is COLA'd.
At the other extreme, we could wait till the latest age to draw the pensions (age 62 for two of them, age 65 for the other two). *Once we were drawing on all of them, we estimate it would cover about 1/3 of our annual living expenses (14 years from now).
Social Security is added to this mix. *So we have to make six decisions about when to collect benefits. *
I've looked at planning using both extremes. *What's best depends a lot on your health and longevity in later years. *Tell me how long we'll live and how active we'll be, and I'll pick the optimum benefit stream. *I'm thinking now that we may stagger the benefit start dates of all these annuities. *But, I reserve the right to change my mind right up till I start collecting. *
My wife will have a partially COLAd pension of about $20K starting next year when she will be 58. I expect a pension of $60K-$65K starting in a couple years when I turn 57. Neither of us will get social security. My job could be cut sooner and lower the pension. One son still in high school so hanging on at work until college costs get worked out a bit. May have to retire anyway and see if finances hold or if I need to do some other full/part time work.
I have had a great time at work the last few years and I am not eager to leave. New manager coming in Dec so that might change things as well as announcements of cutbacks expected next summer.
Old men ought to be explorers
I couldn't vote because there is no option for No Pension, I've been lucky though and worked for companies with very nice 401k plans. Still it would be nice to have that little extra besides SS.
I added this option.
I know what you mean about the pension being nice. Even though I have a small one (beer and chips is about all) and my wife will be gettting a small one in a couple of years; both of them together will not make much of a dent in our expenses so it is almost like not having it. Still, it will lower the total amount needed for ER by something and that makes ER closer than it would have been.
Work? I don't have time to work....I'm retired.
My husband does have a small pension which he took at 55, gets about $110 a month...covers his Cable bill and that's about it. But he was glad he took it when he found out the guys that stayed until they were 65 ended up with only double what he was getting...wasn't worth the extra 10 years IMO or his.
__________________ Dogs aren't our whole lives, but they make our lives whole. - Roger Caras
What's best depends a lot on your health and longevity in later years. Tell me how long we'll live and how active we'll be, and I'll pick the optimum benefit stream.
Originally Posted by ((^+^)) SG
I'm in the 20 to 30 glasses of wine per week category. According to all the modern research I've seen in recent years, if you aren't drinking at least 14 drinks per week, you are limiting your longevity. Many studies indicate a number as high as 28 drinks per week.
My vote is grab those benefits asap. [then again, in the words of the geat Mr. Zappa, "I could be totally wrong but I'm a dancin fool"]
My Pension is <$5k. It would just cover this years property tax bill, but not next years. I can take it @ 55, or get a couple more percent for each year delayed through 65.
The only way it's going to be COLA'd is if I spill Coke on each months check!
As soon as I hit 55, I'm taking it.
I copy and archive every bit of info I get in the mail about it, as the route over the years has gotten pretty snakey. It is on it's 4th controlling company now. A company that bought part of a company's operations that bought a part of a company that bought all of a company. I think I did that right...
I suspect that it is in a dusty Mason jar in a supply room at company #4* :P
-- Telly, the D-I-Y guy --
Two fools dancing on the hands of time
I started drawing the pension in 2002 at age 41. *It's currently $33,864 in 2005 with a 4.1% COLA kicking in for 2006. *I've been meaning to compare notes with an old shipmate who retired in 1989 at my paygrade to see how his pension is keeping up after 15 years of COLAs.
Oddly enough the 2006 military pay increase is only 3.1%. *If I was still on active duty but retirement eligible then I'd be taking a good hard look at my finances right now.
OTOH I met a shipmate yesterday who's still going strong after 24 years. *He's been a command master chief on a submarine, a major shore command, a BURKE-class destroyer, and now an aviation squadron. *He actually looks younger than I remember him. *At this rate he'll be a fleet CMC on his next tour...
I can't remember the last time a military retirement COLA increase beat the wage increase. *What does this say about understating both the ECI and the CPI?
Here, Telly, this one's for you:
The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
No pension for me or the wife. All our retirement planning and financial future solely relies on our own savings and investments. Just to add a bit of an edge, neither of us will get any state support (social security / state pension or welfare from the home countries). In that respect, we are really really on our own!
In contrast, my father worked at the same Co. for 33 years. Took an early out package in his early fifties drawing 75% of final salary plus a tidy lump sum, plus he wll have state pension kicking in in less than 10 years.
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