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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 06-13-2021, 07:30 AM   #281
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Corporate pension that is small(compared to some), but helps pay for bread and butter items.
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Old 06-13-2021, 07:51 AM   #282
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Fortunate to be a member of the BLUE Card club. 37 years Army and army guard 26 active duty years gives us a Military pension retirement of about $3300 after tax and I VA disability of about 1700 (tax free) per month. Wife will get a small TIAA retirement check of about $170.00 per month when she turns 65. It is an annuity and she no longer contributes to it and has not for nearly 30 years. It is from her 3 years when she was a teacher and she taught HS math some 30 years ago. I turn 62 next year and aim to take SS retirement at that age which will be about $1,200 per month. so fortunate and grateful to have 3 pensions. We wont make it to the millionaire club but hope to crack 1/2 million $ club in 20 years with Vanguard VBIAX Taxable account ..(God willing and the creek don't rise)
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Old 06-13-2021, 08:53 AM   #283
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Quite honestly, I was more concerned about medical "supplement" than pension. It wasn't so much the money involved - it was that I wanted a "guarantee" that I would HAVE healthcare. Back about 23 years ago when I "achieved" my "guarantee" I felt FI (and I DID have the guarantee of a pension also.) Explained many times elsewhere, I stayed 7 more years so my pension was significantly larger (still not "big").

I can't suggest you stay or go, but I agree that health care CAN BE a huge issue. Supposedly, now that we have the ACA, you don't have to worry about health care. If it were me, I'd still worry about health care at your age but YMMV.
Well if one has "enough" money, one can self-fund his health insurance regardless of rates, but we will not make it to that level. I've talked with friends who work as fire-fighters or for University of CA, and they have better retirement systems than Federal. Great for them. We are in the middle....believe we would be ok with the subsidized healthcare from federal, but yes, I don't want to depend on State ACA solely - maybe ok in the next 10 years, but what about 20, 30, or 40 when we have much less chance of picking up healthy employment salaries being out of the workforce for a long time. Would not want to be in that 'pickle'. I also reason it now as do it very soon if at all.....at 45 that gives 12 years of additional retirement, but at 50 its 'only' 7 years of additional retirement for 25+ years of medical subsidy - not worth it. Now if FED somehow gives delayed Health to start-up at 60 - would be all over it - could deal with self-funding for 15 years (less time).
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Old 06-14-2021, 01:48 AM   #284
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Even with the ACA, retiree health care can be a tremendous financial benefit. In my case, the avoided health care premium is almost twice as valuable to me as the actual pension.
Heh, heh, don't have a good handle on what it actually costs my old Megacorp to supplement my insurance. BUT, of late, what the insurance has saved me (between MC and supplement) is (almost) priceless!
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Old 06-14-2021, 04:47 AM   #285
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My corp. pension is about 1/4 of spending, and just over 1/4 of my former pay.
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Old 06-14-2021, 06:53 AM   #286
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Quite a few posters have stated their pension amount after reducing it by the portion withheld for health insurance, which misleadingly minimizes the overall generosity of their pension. My ACA premiums in the years approaching Medicare, even after a subsidy, were my single largest expenditure, and I still had an enormous out-of-pocket deductible to meet before the insurance paid a penny (except for a few mandated items).
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Old 06-14-2021, 07:47 AM   #287
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Even with the ACA, retiree health care can be a tremendous financial benefit. In my case, the avoided health care premium is almost twice as valuable to me as the actual pension.
I agree. One "drawback" of having a good pension is that it likely pushes one's income beyond eligibility for any ACA subsidy. I am fortunate that my Megacorp retiree healthcare is much better (both premiums and deductible) that ACA rates in my state. Several friends who will be getting good pensions are waiting until reaching 65 and Medicare eligibility to retire, due to the ACA costs and deductibles.
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Old 07-15-2021, 08:39 AM   #288
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Separate question on the topic of pension. I am currently invested in 2050, 2055 target date funds in my 401K to have higher exposure to stocks vs. bonds. Also, for my after tax savings, I am 100% into stocks.

I recall a discussion here (canít find the thread) that some people treat their pension as a bond fund and hence there is no need to invest in bonds separately. I have small pensions from 2 MCís (total ~$1200 per month). I would categorize my risk tolerance as above average to high. Should I be looking into a balanced portfolio to include bonds or continue with the current approach of just investing in stocks. Appreciate your inputs
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Old 07-15-2021, 08:49 AM   #289
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Yes a pension can be viewed as a bond proxy. Take your pension amount and divide by say 3 percent (an example composite long-term bond yield) and then use that as your bond allocation. Compare that to your total investible assets including the proxy bonds. Compare to your target allocation and adjust accordingly.
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Old 07-15-2021, 08:55 AM   #290
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Yes a pension can be viewed as a bond proxy. Take your pension amount and divide by say 3 percent (an example composite long-term bond yield) and then use that as your bond allocation. Compare that to your total investible assets including the proxy bonds. Compare to your target allocation and adjust accordingly.
Right. Another way is to input the pension amount into an annuity calculation, then use the resulting value of the annuity as a proxy for portfolio fixed income allocation.
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Old 07-15-2021, 11:11 AM   #291
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Thank you. My total pension value is showing as $285,000 when I input mon thly withdrawals at $1200. Annual growth at 2%.
It is comforting to know that this can be treated as bond fund. Will continue investing in stocks.
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Old 07-15-2021, 06:18 PM   #292
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Texas TRS (education) pension. About 70% of final salary.
I will collect TRS pension as well about 52% final salary if I take it next year. Curious what if anything is withheld other than federal taxes?
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Old 07-15-2021, 07:08 PM   #293
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I might be setting some sort of record. I have:

DH's pension as an exempt employee
DH's pension as a union employee
DH's yearly exempt pension add-on to help pay for health care (company doesn't offer retiree HC anymore)
DH's yearly union pension add-on to help pay for health care

At 65, I will get my own separate instances of the four income streams above, plus the payout from one cash balance plan that was created to replace the pension after it was frozen and another cash balance plan that was created when they cut the 401k match way back. (I took DH's two cash balance accounts as lump sums)

And no check/direct deposit can be combined, so if I were insisting on the paper checks that would be six checks every month and four more each January.

All from the same company for both of us.

DH's was based on early retirement, which they helped us jury-rig just before he died, so that's only about $11k annually. Mine would be about $31k annually if I work through the end of next year and take it at 65. (All non-COLA)
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Old 07-16-2021, 02:50 AM   #294
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I agree. One "drawback" of having a good pension is that it likely pushes one's income beyond eligibility for any ACA subsidy. I am fortunate that my Megacorp retiree healthcare is much better (both premiums and deductible) that ACA rates in my state. Several friends who will be getting good pensions are waiting until reaching 65 and Medicare eligibility to retire, due to the ACA costs and deductibles.
Interesting.
With my small corp pension, I can take it anytime I want up to 70 y.o., although it is discounted before 65 y.o.
Since I use the ACA tax subsidies heavily, I am waiting until 65 y.o.
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Old 07-16-2021, 08:58 AM   #295
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I will collect TRS pension as well about 52% final salary if I take it next year. Curious what if anything is withheld other than federal taxes?
My Megacorp does withhold Fed taxes but does not withhold state taxes - which is good since no taxes are due in my state for pension. BUT in my previous state of residence, state taxes were due but NOT withheld. Not a huge deal, but IIRC it caused me to pay quarterlies to the state. Be certain to check as YMMV.
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Old 07-16-2021, 09:54 AM   #296
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As inflation kicks in, my $1,384/month pension is bit less valuable each month. But itís better than not getting a pension!
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Old 07-16-2021, 10:57 AM   #297
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As inflation kicks in, my $1,384/month pension is bit less valuable each month. But itís better than not getting a pension!
Mine is a bit more than yours, but still down almost 40% since it started in 2005. Better than a stick in the eye, but not exactly BTD encouragement. Fortunately, my stash is up enough to cover the shortfall. YMMV
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Old 07-16-2021, 11:04 AM   #298
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Mine is a bit more than yours, but still down almost 40% since it started in 2005. Better than a stick in the eye, but not exactly BTD encouragement. Fortunately, my stash is up enough to cover the shortfall. YMMV

I have a federal pension after 34 years, a Cal-Pers pension after 10 more years, and SS plus my stash. Everyone should have a three leg stool consisting of (1) a pension or an annuity (2) SS and (3) investment savings.
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Old 07-16-2021, 11:10 AM   #299
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Can one assume that a corporate pension will actually be there when one eventually retires and starts to draw it? Or should it considered a potential bonus that may or may not exist?
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Old 07-16-2021, 11:15 AM   #300
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Can one assume that a corporate pension will actually be there when one eventually retires and starts to draw it? Or should it considered a potential bonus that may or may not exist?
In theory, the PBGC (Pension Benefit Guarantee Corporation) works a bit like an insurance company for pensions. Each pension pays in (IIRC) and the PBGC then covers pensions that default. In practice, the benefits are limited, so not ALL of a given pension may be covered. Also, the resources of PBGC are not large enough to cover if many pensions default at once.

Still, I wouldn't worry too much about it. If the PBGC defaults, there are likely going to me OTHER problems as well. Then we can all worry.

YMMV
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