57 YO and thinking it's time

[growing_older]

400K is in a state defined benefit pension which will pay out $63K/ year

How is this rate of payout (15%) possible? Does the state make up the difference?

 

[hnzw_rui]

How is this rate of payout (15%) possible? Does the state make up the difference?

Typically. It's likely that the $400K is purely employee contributions with a tiny amount of interest based on treasuries. If you just take out the lump sum, you're not eligible to get any of the employer contributions and investment returns from the trust fund so it's always better to take the pension annuity.

 

[stepford]

How is this rate of payout (15%) possible? Does the state make up the difference?

If one uses one the usual online annuity calculators the value of the $68K immediate annuity is something around $1M.

 

[robertf57]

Typically. It's likely that the $400K is purely employee contributions with a tiny amount of interest based on treasuries. If you just take out the lump sum, you're not eligible to get any of the employer contributions and investment returns from the trust fund so it's always better to take the pension annuity.

Exactly. Only able to withdraw your own contributions and a trivial interest accumulation. The pension includes the employees contribution and a more generous interest rate.

 

[retiredinnyc]

Did u factor in taxes?

I live in nyc , my pension is 103,000 ,after taxes it's 84,000. I read somewhere u should factor in 1% of the value of the house in repairs. We went a long stretch with no repairs , but then I spent a whopping 360,000 in upgrades about 2 years into my retirement, not that I'll ever get it back when I sell but I wanted it to be mint condition for my retirement years as I spend lots of time in it now. Since your home is worth well over a million dollars like mine is, you need to factor in maintaining it in pristine condition. Congrats on you retirement

 

[robertf57]

CEO asked me on Friday if I wouldn't reconsider retiring. I said no, thank you!
;-)

 

[rdy2go]

Good for you!

 

[bingybear]

CEO asked me on Friday if I wouldn't reconsider retiring. I said no, thank you!
;-)

Should have told him YES! I'll be going a week earlier

 

[Katiek]

Congrats!!

 

[robertf57]

Well, It's two weeks to departure. Trying to wrap up task (particularly unpleasant ones) before the departure. Not too happy with beginning our retirement with the market slumping. Interestingly, being courted by the "dark side" (consulting firm). People can't believe I am just retiring!

 

[Teacher Terry]

YOu will love not setting the alarm anymore. About a year in we decided to do some consulting in our fields but most work can be done on computer at home in our pj's. It's the best of both worlds for us. Congrats!!

 

[kimcdougc]

Only a few days left!

 

[Aerides]

3m + Pension and 100k expenses, quit today!

 

[Al in Ohio]

3m + Pension and 100k expenses, quit today!

You're overcooked. You should have quit last year!


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[robertf57]

You're overcooked. You should have quit last year!


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Friday will be it. (and I am off on Monday!)

 

[robertf57]

Last day was fairly uneventful. Cleaned out what was left in the office. Went to HR for my "exit interview " and the ended the day with a little fair well reception. I was counting the minutes until I could gracefully leave!

First day off was great. Slept in, worked out, and tried to fix a problem with the desktop computer. All in all, a nice start to the rest of our lives!


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[InTheSticks]

One week in, so far so good?