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View Poll Results: Do you have a pension?
Government Pension 166 29.23%
Corporate Pension 195 34.33%
No pension, just SS & savings 207 36.44%
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Old 05-23-2021, 09:01 PM   #221
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Heh, heh, just like "rich" and "enough", I guess we need to define "small" since YMMV.
I must have an outdated dictionary.
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Old 05-24-2021, 12:09 AM   #222
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I have 2 corporate (union) pensions (cough) which kind of sucks because I am still working to maximize my monthly payout.

I have over $2 million in my portfolio so why am I still working at this point? Age 58 with a super affordable health care option to get me to age 65.

Not one coworker is familiar with the FIRE movement which I find very strange?

Also all the full pension amount guys (30 years) I work with are still working because their wives are making them. lol
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Old 05-24-2021, 12:14 AM   #223
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I have an interesting one - After working 19-1/2 years for Company A, Company B bought us. Fortunately we were grandfathered into our old plan. I worked 1-1/2 years for Company B, and decided to move on. Because I was grandfathered in, I received a lump sum for those 19-1/2 years payable at age 50. The 1-1/2 years at Company B was not included in the lump sum, so they send me a whopping $31.84 check each month for that time. I am going on 12 years with that $31.84 check coming in each month. No telling how much it takes to keep up with me and send out that check, but it seems like they should of just paid me a lump sum for that 1-1/2 years and moved on. Corporate bureaucracy at its finest.
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Old 05-24-2021, 05:47 AM   #224
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Yes and I collect it at age 55 which is in less than 1 year. I have to call the pension company when I turn 55 or else the pension plan cannot be activated.
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Old 05-24-2021, 11:57 AM   #225
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Yea, I don’t know where a $3100/mo pension at 55 is considered small...
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Old 05-24-2021, 12:20 PM   #226
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I know more than a few engineers that qualified for a very nice ERP, with healthy pension & excellent severance & HC benes, that already had over 30years, past age 60, etc. that didn’t take it because either their wives didn’t want them at home or they didn’t want to stay home with their wives or live in inlaws/adult children etc. They are defined by their w*ork.
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Old 05-24-2021, 02:32 PM   #227
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Yea, I donít know where a $3100/mo pension at 55 is considered small...
Yeah, I was thinking the same thing. I would agree it's not a "top tier" number, but lots of folks would think it at least adequate as pensions go - especially at 55. That's why my comment on defining the word "small" - just as we've attempted to define things like "rich" and "enough." Just one more thing in a long line of YMMV.
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Old 05-24-2021, 03:35 PM   #228
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Yea, I donít know where a $3100/mo pension at 55 is considered small...
Yes its roughly a portfolio of around $900,000 paying you a monthly guarantee.

My 30 year monthly amount is around a portfolio with 1.25 million paying out a 4% withdrawal rate.

Its enough to make a difference.
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Old 05-24-2021, 04:25 PM   #229
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Yes its roughly a portfolio of around $900,000 paying you a monthly guarantee.

My 30 year monthly amount is around a portfolio with 1.25 million paying out a 4% withdrawal rate.

Its enough to make a difference.
$3100 for most folks would easily qualify for one leg of the 3 - legged "stool" of retirement income. One might expect almost that much again from a full SS payment at FRA. If you have a $Mil as your stash (40/60 to 60/40) you could probably pull almost 4%. Pretty soon, you're looking at the better part of $100K/year. (Like the old commercial) Not a fortune but "adequate." YMMV
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Old 05-24-2021, 05:10 PM   #230
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Between 2010 and 2020, annual avg SP 500 return rate is 13.6%.

That means $300,000 invested at the beginning will yield $3400 per month.

Certainly one of the three legs of a stool for those who retires with $1M net worth.
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Old 05-25-2021, 08:00 PM   #231
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Maybe to some people $100k/yr in retirement income is small? That would be a pretty good disconnect IMHO, but I’m sure they exist.

Just curious, (doesn’t apply to me) but has anyone here actually taken the lump sum offered by their pension provider and then purchased an annuity with it, even if they added some of their own cash, to provide themselves with their own personal pension?
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Old 05-25-2021, 08:23 PM   #232
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Maybe to some people $100k/yr in retirement income is small? That would be a pretty good disconnect IMHO, but Iím sure they exist.

Just curious, (doesnít apply to me) but has anyone here actually taken the lump sum offered by their pension provider and then purchased an annuity with it, even if they added some of their own cash, to provide themselves with their own personal pension?

DW took a lump sum and rolled it into her 401k. Between dividends, my $1,385/mo pension and interest we generate ~$100k of income. That excludes any selling of shares.
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Old 05-26-2021, 01:49 AM   #233
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Originally Posted by Perryinva View Post
Maybe to some people $100k/yr in retirement income is small? That would be a pretty good disconnect IMHO, but Iím sure they exist.

Just curious, (doesnít apply to me) but has anyone here actually taken the lump sum offered by their pension provider and then purchased an annuity with it, even if they added some of their own cash, to provide themselves with their own personal pension?
I have taken lump sum offers on 2 corporate pensions and have one in deferral. In all 3 cases the pension payout terms are better than a direct comparison with taking the lump sum and investing it in a SPIA. The difference I've seen is between 10% and 25% higher monthly payments from the pensions. From what I've read that is fairly typical. It would be interesting to hear from anyone where the opposite was true.
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Old 05-26-2021, 05:29 AM   #234
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Quote:
Originally Posted by Perryinva View Post
Maybe to some people $100k/yr in retirement income is small? That would be a pretty good disconnect IMHO, but Iím sure they exist.

Just curious, (doesnít apply to me) but has anyone here actually taken the lump sum offered by their pension provider and then purchased an annuity with it, even if they added some of their own cash, to provide themselves with their own personal pension?


I condidered taking the lump sum and waiting for rates to rise making an annuity more attractive (market timing I guess). That was 6 yrs ago and rates havenít gone up. The main reason I did not take the lump sum was that megacorp subsidized the Survivor benefit. I could match the single life annuity payment but the cost for a survivor benefit was much higher at places like immediateannuities.com. The Megacorp docs showed a relative value score for each pension option. The single life was 100% but the survivor option was 107%. The others were 90% or less
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Old 05-26-2021, 06:20 AM   #235
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corporate pension - just got my first check last month at age 50 after working 31 years...loving it!
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Old 05-26-2021, 07:52 AM   #236
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congrats spanky!
My "small" pension is 'bout three hunnert' [/Brad Pitt from Thelma and Louise] i think that meets the common criteria for small.
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Old 05-26-2021, 07:56 AM   #237
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Again, somewhat surprising that the "early" retirement board consists mostly of pensioners.
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Old 05-26-2021, 08:01 AM   #238
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Again, somewhat surprising that the "early" retirement board consists mostly of pensioners.
The pensions allowed a lot of people to retire "early".
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Old 05-26-2021, 08:26 PM   #239
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Again, somewhat surprising that the "early" retirement board consists mostly of pensioners.
I at least understand where you are coming from. I got sucked into this site by accidentally finding the John Greaney site that emphasized a roll-your-own approach (saving/investing - who needs a pension?) Bail at 32 or whatever.

So maybe it WOULD seem unlikely that most of us have a pension. Guilty as charged. BUT, before my pension vested, I did my best to be ready - just in case it never did (I could have been fired, could have decided my sanity would no longer survive another day and quit, etc.) That's how I got here - I started trying to emulate Greaney. Then, I DID stay for the pension and HC supplementation. What can I say? Maybe I didn't have the guts I needed. Also, explained often, I suddenly ended up doing something I liked (what a concept!) at w*rk. We shouldn't poo-poo your question though IMHO. It's valid to at least ask. YMMV
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Old 05-26-2021, 09:48 PM   #240
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Both wife and I are drawing government pensions totaling $11.4K/mo plus a $1.9k stipend for healthcare. Also paid into and will get Social Security in a few years.

Havenít touched a dime in various IRAs, 401(k) or 457 plans since retirement.
Congrats on your wonderful pensions. Wow. Are you aware of the WEP and GPO provisions in relation to Social Security benefits (how they are impacted by your government pensions)? These laws greatly impact my husband and myself, so much so that I will not receive a spousal or survivor benefit from DHís Social Security. Also, his SS benefit is reduced by $330/month due to the WEP. I find that many people who have/will have government pensions are unaware of these two very important laws.
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