Is an extra year of w*rk worth $2700 annually?

[badatmath]

I feel like I have enough in the 401k I guess is why I don't think about it much. I mean it is not objectively a lot ~1M. . . but I mean its enough that I feel like I won't be living in the car.

Still you have brought up some good points, giving me more to think of. I can't leave before 55 if I want to take their insurance so I have time to consider. (Currently not quite 54).

The only way I think I could make say 3 years is to find a different job at the same place - not impossible but not easy at my age. 3 years would be pretty golden really but its just not going to happen in this crappy job they shoved me in after the last layoff mess.

[38Chevy454]

Quote:

Originally Posted by Andre1969 For me, the quick answer would be that no, one more year of my life spent working is not worth another $2700 annually. But, there's more to it than just that. As others have mentioned, working an extra year means one less year of retirement you have to fund. And one more year that your investments can grow, as you're not tapping into them yet. And the added bonus of one more year of continued investments, if you're still putting money away into an IRA, 401k, or even an after-tax account. Then there's health insurance. If your company is currently paying your health insurance, that's a bill you're going to have to pick up, unless you're old enough to go on Medicare. But even there, there's gap insurance. Also, if you're expecting to receive SS, an extra year of work will increase that payout if you're replacing a low-paying year or a "zero" year with a year's worth of higher wages, for their calculations.

Agree with all of the points above. These are several factors that are for consideration besides the simple $2700/yr pension increase.

[gooddog]

Depends on your age at retirement. $225/month for 40 years makes the extra year worth it. $225/month for 20 years, maybe not.

[badatmath]

Yeah I would be 55.

[Irishgirlyc58]

I think it depends on what percentage of your income that $2700 would be.

[Koolau]

Quote:

Originally Posted by Irishgirlyc58 I think it depends on what percentage of your income that $2700 would be.

Yeah, if it's 10% or more, maybe. Less than that, forget it and just be ready to make cut backs or do gig-w*rk if need be. YMMV

[old medic]

Quote:

Originally Posted by badatmath If your pension is only 23K. . . Probably not making a lot of sense but you folks always make me think.

Makes total sense to me....I have pondered the same question at length , playing with numbers... pros and cons...
As noted, the extra year is more than just the added 225 month, or almost 12% increase.. Same as me, it would have built my 401 savings, save my insurance costs, a year closer to SS, ECT.
My increase would have been about 5.5% increase... not worth it in my book. I used your 12%... and still would not have done it.... I can work one day a month and make that same money.... IF I need some extra cash. From what other Info you posted, it doesn't sound like you need the extra 225... I'd jump.
GOOD LUCK TO YA

[brett]

So many personal and financial factors to consider.

It may be one more year of work.

But it is also one less year of retirement, and hopefully one more year of healthy retirement. That is something you cannot buy.

There is a cost. But looking at that cost and not looking at the benefit may lead you to make a decision that you could regret in the future.

Money may not be the best decision criteria for you.

[Koolau]

Quote:

Originally Posted by badatmath If your pension is only 23K. . . I'm trying not to ask a finance question so leaving out my other assets, more of a way to think about it being the "right" thing or not. Probably not making a lot of sense but you folks always make me think.

Back to basics for a moment: (I hope this doesn't violate the spirit of your question.)

If you have calculated what your various expenses will be and how much money you will have to meet those expenses (IOW if you have run FIRECalc and other rather exhaustive retirement planners) AND the answer is "you have enough" why is one aspect of retirement income (in this case pension) a significant driver of one-more-year vs pulling the plug?

Sorry if this seems off topic in relation to your question. YMMV