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View Poll Results: Do you have a pension that has any significant impact on your retirement budget?
Yes, more than 25% 196 46.34%
Yes, less than 25% but still meaningful 57 13.48%
Yes, I have a pension, but it doesn't have a significant impact on my retirement budget. 43 10.17%
No pension 127 30.02%
Voters: 423. You may not vote on this poll

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Old 02-24-2017, 09:16 AM   #61
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I am surprised at the high percentage (at least of those responding) of pensions. I am fortunate, my private non-COLA pension has covered 90% of all my expenses for the nine years I've been retired.
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Old 02-24-2017, 09:33 AM   #62
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My pension is currently more than 25% of our budget. It is non-cola so will become less meaningful as times passes. SS will kick in at age 66 and that will also make it a smaller part of our budget.
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Old 02-24-2017, 09:45 AM   #63
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I voted "no pension," although DW has a small pension that barely covers her health insurance premiums. Probably equal to ~10% of our budget.

Maybe I should have voted <25% but still meaningful.
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Old 02-24-2017, 10:03 AM   #64
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With Health Care being $1000 - $2000 a month for Pre Age 65 couples, I am surprised at how many can cover all expenses with a modest pension. I assume some of the respondents also have subsidized health care. Our HC premiums just about exhaust our modest pension.
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Old 02-24-2017, 10:04 AM   #65
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Yes, DH and I both have COLA pensions with 100% survivor. (have combined >60 year govt service) They cover our expenses fully at this time.
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Old 02-24-2017, 10:25 AM   #66
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An observation.

I'm glad this pole/thread was done. I have to say that I'm surprised that almost half of the respondents have a significant (>25% of income) defined benefit pension. The sense I've had from reading various threads/posts over the years is that the number would be much smaller.
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Small pensions & SS cover essentials
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Old 02-24-2017, 10:39 AM   #67
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Originally Posted by Huston55 View Post
An observation.

I'm glad this pole/thread was done. I have to say that I'm surprised that almost half of the respondents have a significant (>25% of income) defined benefit pension. The sense I've had from reading various threads/posts over the years is that the number would be much smaller.
+1

I have noticed how many times pensions are mentioned here in general discussions and realized that didn't match the prevailing trends about the number of (non-SS) pensions going down. The polling numbers seem to bear this out - we have a disproportionate number with pensions here (and good for them!)

The long-term implications seem kinda grim though - FIRE in this day and age is already pretty rare, even with some (non-SS) pension help. Without pension help it stands to reason that FIRE would be even rarer. Just shows that our kids and grandkids will have to be even more dilligent about LBYM and intense savings.
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Old 02-24-2017, 10:44 AM   #68
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I have two modest COLA'd pensions. In total, they cover living expenses and a little extra for now.
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Old 02-24-2017, 11:02 AM   #69
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Currently, my pension and wife's salary cover about 140% of expenses. This allows up to be still putting away money. However, when she retires (2-3 years) and we have an additional health insurance premium to pay for, plus normal inflation, my financial projections put us in deficit spending about two years before SS kicks in. At this point, the money we are squirrelling away will be necessary. Very grateful we have a significant emergency fund
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Old 02-24-2017, 11:14 AM   #70
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Although, I am grateful for our pensions I wish that our healthcare through the state was more affordable. It went up to 11.5k/year for our HMO. We will switch to the PPO in July at half the cost and hope that the larger out of pocket expenses don't take all the savings. We purposely worked for the state for the pensions. I saw how much they helped my parents retirement. We also took smaller amounts to have the 100% survivor benefit. My Mom lived so long that she used up all their savings but was able to live fine on the pension.
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Old 02-24-2017, 11:27 AM   #71
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My govt. COLA pension will be my only source of income (begins in May), and will eventually be supplemented by OAS and will easily cover my expenses which will be about 2/3 of my total income. Until then, I'm living on savings.
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Old 02-24-2017, 11:31 AM   #72
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My govt. COLA pension will be my only source of income (begins in May), and will eventually be supplemented by OAS and will easily cover my expenses which will be about 2/3 of my total income. Until then, I'm living on savings.
IIRC you were a federal government employee. Just wanted to mention that I had a very positive experience at the passport office this week. In fact I recognized the security guard from my last visit five years ago. Everyone was extremely pleasant and helpful despite a big crowd. Kudos where kudos are due. Enjoy your pension!
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Old 02-24-2017, 11:53 AM   #73
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IIRC you were a federal government employee. Just wanted to mention that I had a very positive experience at the passport office this week. In fact I recognized the security guard from my last visit five years ago. Everyone was extremely pleasant and helpful despite a big crowd. Kudos where kudos are due. Enjoy your pension!
I'm glad you had a good experience...not all of us are/were slackers!!
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Old 02-24-2017, 11:55 AM   #74
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I voted: Yes, less than 25% but still meaningful. My current employer has an active pension plan that would currently be worth ~$1500 a month at age 65.

I work in the "upstream" end of the oil business, in oil and gas production. I am an hourly level technician and have always worked directly for a "major", not as a contractor. The oil majors are some of the last hold outs offering pensions in the private sector. I have actually vested in 4 separate pensions over the years. The oil biz has been rocky, and I've been "sold" twice and severance packaged out twice. I have lump summed two of those pensions - they didn't amount to much, about $100K lump in total. I still have an old micro pension ~$200 a month non-cola at 65 and I am still accruing credits with my current employer.

My current pension is a bit of an odd duck. It is a cash value plan, the company contributes to my account quarterly and the contribution amount is set by tiers. Tiers depend on age and years of service. I currently get ~10% of pay and I am one tier below the top. The account balance grows at a guaranteed floor of 5% or the 30 year treasury rate if greater. Once I leave the company, I can elect to leave the lump growing for as long as desired, then lump sum out at any time after or convert to a non-cola annuity at the prevailing rates. There is a lot of flexibility built into the plan, but a lot of opportunity to screw up as well. The pension plan (called a RAP, or retirement accumulation plan) is managed by Fidelity. Fidelity also manages the company 401K, which is a separate plan.

My intention when I retire in 2020 at age 61 is to leave the pension growing at Fidelity until age ~70 and then annuitize if the annuity rates are favorable. I plan to use the years between age 61-70 for Roth conversions at low tax rates.

I usually consider my pension as a part of my AA as bonds, even though I know that isn't conventional wisdom. The mechanics of my plan seem to make considering it a bond investment more appropriate than a typical pension might be.
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Old 02-24-2017, 02:37 PM   #75
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I have a non-COLA'd pension coming my way in a few years that will be about 10% of my annual spending (not counting the taxes). I am not considering this to be part of my retirement budget since it is so small. Years ago, I thought I would be lucky to get one meal out of this pension at some cheap restaurant, considering inflation, but so far, it's looking like it might buy more than a meal at a cheap restaurant, which I am pleased about. As W2R said, it sure beats no pension at all.
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Old 02-24-2017, 03:07 PM   #76
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I too am amazed that such a small minority of us have no pension at all. I thought it would be at least half the group!
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Old 02-24-2017, 03:17 PM   #77
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Great poll. It really sheds some light. I have stated before that any pension should be disclosed when providing info regarding investments and AA.
While I have a small pension which was frozen in 1994 there are no sour grapes here. The company jacked up their contribution to our 401k and still provide retiree medical to those affected by the freeze (so far). By good fortune and staying the course I'm a little bit ahead of where I would be with the pension. However this is not repeatable for the majority of new members coming to this forum.
This is just an observation but it irritates me when the 100% equity people claim superior knowledge while many of them have their ***etts covered with a pension.
Sorry for the vent but let's keep it honest. 100% of 10k does not equal 40% of 2.5m with no pension when it comes to investment advice. Thank-you
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Old 02-24-2017, 03:23 PM   #78
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I don't have a pension. DW has a very small one that really doesn't figure into our retirement budget - she spends it on the grandkids.
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Old 02-24-2017, 03:27 PM   #79
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it irritates me when the 100% equity people claim superior knowledge while many of them have their ***etts covered with a pension.
No question about your being right, but I really haven't seen much of that. I think most of us who have pensions tend to disclose the fact. But there are also a fair number of us who still maintain a good diversified and balanced AA despite our good pensions, just because we're chicken!
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Old 02-24-2017, 03:29 PM   #80
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My non-COLA pension was frozen about 7 years before I retired. DW was able to continue earning credits for hers until retirement due to being grandfathered. When her employer took away pensions for new employees, they also made any credit after that non-COLA. So, about a third of hers is COLA and two thirds not. Kind of odd.

I will start taking mine at 60 with very minimal reduction. DW gets heavily penalized before 65, so she will wait until then. If we were taking them today, they would cover 40-50%, but by the time we are both taking them at her age 65, I estimate they will cover about 25%, so that's what I answered.
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