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Old 10-01-2012, 12:19 PM   #121
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I agree with Midpack.
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Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

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Old 10-01-2012, 12:20 PM   #122
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Join Date: May 2011
Posts: 159
Current Age: we are 34 and 36 years old
Projected/Goal Retirement Age: aiming for age 45ish
Total working years: 21 years of working
Pension: None

I assumed pension was more for a private account from a company. I'm not taking it into consideration, so it'll be like a bonus.
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Old 10-01-2012, 07:23 PM   #123
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Join Date: Jan 2005
Posts: 362
Current age: 57 (DH 61)
Retired at age: 39 (DH 53)
Worked for 15 years. (DH 31)
Pensions for both of us plus savings/457s/IRAs/part-time job.
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Old 10-03-2012, 12:13 PM   #124
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Join Date: Sep 2007
Posts: 196
Current Age: 33 years old
Projected/Goal Retirement Age: aiming for age 36
Total working years: 14

I'm not including SS because there is such a time lag that it has no bearing on analysis of the first 30-odd years. Other than that, there won't be any pension.
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Old 10-04-2012, 09:13 AM   #125
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Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
CA: 58
RA: somewhere between 59 and 62
WY: 30 in current field, 41 total
Pension: tiny
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Old 10-04-2012, 02:11 PM   #126
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Join Date: May 2011
Location: Austin
Posts: 223
Me: 47
DW: 40

Me: 28 years @2023
DW: 8

Pension: Nada
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Old 10-04-2012, 10:33 PM   #127
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Join Date: Sep 2012
Posts: 24
CA-42
RA-55
WY-25 (26 yrs in January-I have worked at the same company since I was 16)
Pension-NO
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Old 10-04-2012, 10:48 PM   #128
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Join Date: Sep 2009
Location: Hong Kong
Posts: 1,575
Current age: 46
Retirement age: 47 (2013)
Years working at retirement: 24.5 (not including part time and holiday jobs while a student)
No pension,SS or equivalents - just our own savings and investments
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Old 10-05-2012, 07:15 PM   #129
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Join Date: Sep 2012
Posts: 45
Current Age: 44
Projected FI Age: 54
Total Working Years (at FI): 23
Pension: I am seeking financial independence without taking into account work pension (with inflation adjustments) and Canadian gov. programs (CPP and OAS).
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Old 10-05-2012, 07:30 PM   #130
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Location: The Bay Area
Posts: 1,802
CA: 57 (this month)
RA: ~58
WY: 34
Pension: Small one, COLA adjusted with health insurance
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Old 10-06-2012, 07:26 PM   #131
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Join Date: Apr 2007
Posts: 354
Current age: 44 (well, in a few weeks) -- DH 54
Projected Retirement Age: 50-55 (DH 60)
Years working at retirement: 20-25 (DH more or less the same -- he worked for a few years prior to grad school, but in a local job in China so no real income/savings from that)
Pension: No, but modest SS

We could probably semi-retire (or maybe even fully retire) now if we sold our apartment and left China. I am having more and more days where that looks like a good option. But for now we have good jobs with decent salaries and good benefits (including my employer retirement contribution, which will go to 10% of my salary in January), so we're sticking it out.
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Old 10-06-2012, 09:10 PM   #132
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Join Date: Nov 2007
Posts: 7,530
Current Age: 32
Projected/Goal Retirement Age: 35
Total working years: 12
Pension: No

DW may end up with a little less than 12 years if she quits before I do, but she may be a few years older than me (except she stopped counting at 29).

As for a pension, I would be eligible for one if I continued working another 3 years, but I wouldn't get it for 30 years (when I turn 65) and inflation would eat away most of the value by the time I could take it. Hence I will be cashing out the ~$25,000 lump sum value regardless of whether I hit the 5 year vesting schedule to be eligible for the pension. If I took it, it would pay around $100/month in 2012 dollars (at age 65), and once I start drawing it, it would be partially indexed for inflation (COLAs by fiat of the lawmakers which have proven to be less than CPI lately).

After skimming the whole thread, I see that some questioned whether SS should be considered a pension. We are eligible for a decent SS payout at our full retirement age (enough to pay most of our bare bones expenses). Doesn't really factor in to our calculations of what we need to be FI, since it won't be available to us for over 3 decades from the projected FIRE date, and it is somewhat speculative as to what the SS benefits will look like at the time we are eligible to start receiving SS.
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Old 10-06-2012, 10:07 PM   #133
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Join Date: Mar 2006
Posts: 126
Here's my info:

Current Age: 38
Projected/Goal Retirement Age: 55
Total working years: 18 years
Pension: No

I might be able to retire earlier, it all depends on how profitable my businesses will be in the upcoming years, investments, new ventures and wife's business.
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Old 10-07-2012, 09:40 AM   #134
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Location: Indialantic FL
Posts: 1,199
Me 48 DW 58
Me 45 DW 54
Me 20 DW 26
DW and I both have military pensions. DW has a small travel business, she spends more time planning our travel than clients.
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Old 10-07-2012, 11:16 AM   #135
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Originally Posted by FUEGO View Post
As for a pension, I would be eligible for one if I continued working another 3 years, but I wouldn't get it for 30 years (when I turn 65) and inflation would eat away most of the value by the time I could take it. Hence I will be cashing out the ~$25,000 lump sum value regardless of whether I hit the 5 year vesting schedule to be eligible for the pension. If I took it, it would pay around $100/month in 2012 dollars (at age 65), and once I start drawing it, it would be partially indexed for inflation (COLAs by fiat of the lawmakers which have proven to be less than CPI lately).
Hmm, that sounds like FERS. I am actually in the exact same position I believe, so this is interesting to me. As far as I know, you only get the 0.8% each year you put into it, plus the interest rate on the amount based on government securities (1.6% right now). So it would be basically be impossible to hit $25,000 in eight years or less unless you voluntarily put more into it. In my case it will be something like $8,000 after eight years. I would then get a benefit of about $225/month in today's dollars with "inflation protection". The thing is, $8,000 in the market for 26 years would result in ~$75,000, or $29,000 in inflation adjusted dollars. A $29,000 inflation adjusted SPIA would have a rate of 4.2%, and would pay $101/month. So, leaving it in is actually a better idea, for people who started working before 2013. That is you and me.

In 2013 a big change happens, the contribution rate skyrockets to 3.1%, for the same benefit, so a new employee after that would have to pay 3.875x more to get the same benefit, that means with someone with my numbers, $101/month would suddenly get multiplied by 3.875x, equaling $391/month. This makes a lump payment suddenly a big winner, and the new federal employees starting 2013 will be basically getting screwed if they keep their money in FERS. Frankly, at that contribution rate, they would be doing government employees a favor by just abolishing the FERS annuity for new employees. This seems to be going the same way of pensions in the private sector, I would not be surprised if a "buyout" occurs in 10-15 years for all federal employees from 2013+, in which there won't be much grumbling, since the pension payout will be so poor compared to the lump sum payout.
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Old 10-07-2012, 01:48 PM   #136
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Age= 65
worked 34 yrs
retired @ 52
Mega corp (non-cola) pension & retiree healthcare benefits
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Old 10-07-2012, 02:24 PM   #137
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Join Date: Nov 2008
Posts: 136
Current Age: 45
Projected/Goal Retirement Age: 50
Total working years: 32
Pension: No, but 7 figure 401k, as well as ira, annuity, income from various rental properties, & taxable accounts.
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Old 10-07-2012, 03:02 PM   #138
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Location: Miraflores,Peru
Posts: 883
Current age: 58
Retirement age : 33 ( 25 years in another 10 days!)
Working years : almost 20 years ( started working PT at 14 1/2)
No pension, will start SS in 3 years, which will provide 100% of COL.
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Old 10-07-2012, 08:05 PM   #139
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Originally Posted by plex View Post
Hmm, that sounds like FERS. I am actually in the exact same position I believe, so this is interesting to me. As far as I know, you only get the 0.8% each year you put into it, plus the interest rate on the amount based on government securities (1.6% right now). So it would be basically be impossible to hit $25,000 in eight years or less unless you voluntarily put more into it. In my case it will be something like $8,000 after eight years. I would then get a benefit of about $225/month in today's dollars with "inflation protection". The thing is, $8,000 in the market for 26 years would result in ~$75,000, or $29,000 in inflation adjusted dollars. A $29,000 inflation adjusted SPIA would have a rate of 4.2%, and would pay $101/month. So, leaving it in is actually a better idea, for people who started working before 2013. That is you and me.

In 2013 a big change happens, the contribution rate skyrockets to 3.1%, for the same benefit, so a new employee after that would have to pay 3.875x more to get the same benefit, that means with someone with my numbers, $101/month would suddenly get multiplied by 3.875x, equaling $391/month. This makes a lump payment suddenly a big winner, and the new federal employees starting 2013 will be basically getting screwed if they keep their money in FERS. Frankly, at that contribution rate, they would be doing government employees a favor by just abolishing the FERS annuity for new employees. This seems to be going the same way of pensions in the private sector, I would not be surprised if a "buyout" occurs in 10-15 years for all federal employees from 2013+, in which there won't be much grumbling, since the pension payout will be so poor compared to the lump sum payout.
Nope, not in FERS. That would be a far better deal than my pension plan. I wish they would abolish ours, as they take out around 6% of base compensation and you don't even get any interest credited until you vest at 5 years. Unfortunately, my pension really is as crappy as I described it if you pull the plug at 5 years of service and are young (as in under 50-55 probably). I did similar math to yours though, and figured I could roll my own pension and beat the agency's plan payout if I manage to get around zero percent real return over the 30 year period between age 35 and 65. I think I can manage that, and not expose myself to government raiders stealing money from the pension plan, elected officials screwing pension holders, changing rules mid game, etc etc. So lump sum it is for me. And unfortunately it will be around $25000 of my dollars sitting there when I hit 5 years, doing very little to grow my wealth.

It is a great plan though if you put your 30 years in, and retire at say 51 and draw 60% of your highest year salary plus vacation payout and a few other spiking measures. Not that I would ever work 30 years in this loony bin!
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Old 10-07-2012, 09:17 PM   #140
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Ah, I see. 60% does sound like a nice top end, after 30 years under FERS, it is 33%, you can also use sick leave to spike it a bit, but it is definitely not worth it. On the other hand, they don't make it ridiculously painful pulling out early, if you want. Definitely sounds like the best idea to cash out under a 6% contribution rate, it sounds like they penalize you for doing anything less than selling your soul to the company.
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