Poll:How many here have a defined benefit pension?

[MarieIG]

Quote:

Originally Posted by latexman 2-3 weeks ago online, I requested to start my MegaCorp defined benefit pension. The documents came Friday. $6829/month starts August. It’s 100% Joint and Survivor.

Good for you for caring enough for your spouse to obtain the 100 percent joint and survivor.

[skyking1]

I have two defined benefit Non-Cola pensions from the trade unions. The larger one I am still contributing to.
That one I can set as 100% joint and survivor and that is the plan.

The smaller one I was able to just squeak into with a bare minimum of years of service and minimum hours in the last two 'years', which I worked over a single winter. I needed 360 hours in a year, and I worked from October to March and got two years that way.
That one is in critical status, and I am waiting to get a login to view the plan and see what it amounts to. I think that one has no survivor option but it is relatively small potatoes. It might be enough to wash my Medicare payment.

[TheWizard]

Quote:

Originally Posted by Out-to-Lunch You say that like it is a bad thing...

The higher tax bracket for survivor usually comes up in discussions of married couples with large tax-deferred accounts and eventual large RMDs.
So many of them try to do large Roth conversions to keep the eventual survivor out of the 24% or higher tax bracket.

With pensions and annuities, one solution is to choose 2/3 to survivor, which should boost the initial amount a bit as well...

[skyking1]

We are lean FIRE and DW will need that 100%. It is not about the taxes there, but the roth conversions are.

[TheWizard]

Quote:

Originally Posted by RobbieB I've never understood the "higher tax bracket" or the "tax torpedo" Yeah, the more you make the more they take. Easy. But they don't take it all eh? So the more you make the more you have regardless.

The issue is large jumps in AGI caused by certain things, usually start of SS and RMDs for the unwitting tax torpedo folks.

Similar when changing from MFJ to filing single in certain situations.

I'm single and would be fine having 3x my current income and being in the 37%(?) bracket and highest IRMAA tier for my remaining years so long as it was a rather steady situation, from start of retirement onward...

[TheWizard]

For a non-COLAd pension or annuity, selecting 100% to survivor might often be a good idea.
Assuming ten years or more before the first one passes, inflation will have reduced the value of that income stream significantly...

[nerkdawg]

Defined benefit with COLA - retired fed under CSRS.

[punkinhead]

I have one waiting for when I decide to take it. The PBGC has it right now because the company went bankrupt. It will be about $25k/year depending on when I take it so not exactly life changing but better than just beer money. I'm still trying to decide whether it's worth taking early so that I can use the HCTC to pay most of my health insurance, but that's a real crap shoot since the HCTC has to be renewed by Congress every year.

[rwdflynavy]

I've got my COLA'd military pension and a COLA'd VA disability payment that isn't technically a pension.

The Mil pension I pay for survivor benefit (55% of the payments we get now) and VA disability will stop when I die.

[Dtail]

Small non cola pension. Will take it lump sum at 65.

[Bamaman]

My MegaCorp defined pension program was one of the best around, and we also had a FIDO 401K to invest in with better investment options than most.

MegaCorp after a few years stopped the defined pension program for new hires and went with the 401K completely. Retirement benefits were still costing them over $100 million a year, and they sold the defined pension last year to an insurance company. That was their way of divorcing us from their family.

But my wife and I get about $700 each per year going into a Viva HSA which covers part of our Medicare expenses. And we're thankful for that.

I'd hate to be 25 years old and starting to save for retirement in times of high inflation, a stock market that's bombing and still extremely low interest rates. And that's on top of 25% increase in the housing market and EV's that are being forced upon us at prices 2x that of 5 years ago.

[Gumby]

We each have a diet cola pension. Hers is much larger than mine and has a much better cola provision. Both are 100% survivor benefit. I also have retiree health insurance, which is far more valuable than my meager pension. Although I did have to contribute 3% of my salary for 10 years to get it. I get social security, but she never will, due to the GPO and also not being eligible on her own record.

[wrigley]

2 military pensions here (and both still working). COLA for those pensions are usually determined by the climate in the WH.

Mike

[DektolMan]

I also have just SS and it's COLA'd

[Midpack]

And unfortunately this isn’t disclosed when people are answering any number of questions here. Decumulation for a FIRE household is different than a SIRE household, could be completely different. At one extreme two COLA’d pensions covering all planned spending versus a household with no pensions or annuities at all. Investing and risk tolerance are completely different at the extremes, and many fall somewhere between. Something to keep in mind when reading Q&A here…

[target2019]

Quote:

Originally Posted by wrigley 2 military pensions here (and both still working). COLA for those pensions are usually determined by the climate in the WH. Mike

And the U.S Congress. And the military leadership that has to work out what can pass through Congress and get signed by the President.

Just one non-COLA'd pension in our home (for the spouse). Her pension turns out to be a key income stream in retirement, as it was for her mother. Those pensions are no longer available to state and hospital workers.

[Gumby]

Quote:

Originally Posted by Midpack And unfortunately this isn’t disclosed when people are answering any number of questions here. Decumulation for a FIRE household is different than a SIRE household, could be completely different. At one extreme two COLA’d pensions covering all planned spending versus a household with no pensions or annuities at all. Investing and risk tolerance are completely different at the extremes, and many fall somewhere between. Something to keep in mind when reading Q&A here…

And something to keep in mind when trying to give helpful advice. Your situation may be sufficiently different due to the presence or absence of a pension that it is not suitable advice for the other member. I try to remember to add any necessary caveat, although I'm certain I have not always been successful.

[Mulligan]

Cola’d pensioner here and live comfortably off of it easily. It appears to have increased over 40% since I retired over 10 years ago. My personal inflation rate tends to stay well under CPI so my monthly cash cushion grows.
Patiently waiting 5 more years for SS to kick in at 62 so I can get a humongous $115 more a month to spend.

[phil1ben]

The poll calls for a yes or no answer. I get a small defined benefit pension that represents 0.7% of my annual income. So I guess my answer is "yes" but not really.........

[latexman]

Quote:

Originally Posted by TheWizard You do realize that by choosing 100% to survivor, that you are likely forcing the survivor into a higher tax bracket...

Yep, could be, it depends on our investments, but I have a plan to minimize that. Roth conversions.

Quote:

Originally Posted by Out-to-Lunch You say that like it is a bad thing...

It's a good problem to have.

Quote:

Originally Posted by MarieIG Good for you for caring enough for your spouse to obtain the 100 percent joint and survivor.

Quote:

Originally Posted by TheWizard The higher tax bracket for survivor usually comes up in discussions of married couples with large tax-deferred accounts and eventual large RMDs. So many of them try to do large Roth conversions to keep the eventual survivor out of the 24% or higher tax bracket. With pensions and annuities, one solution is to choose 2/3 to survivor, which should boost the initial amount a bit as well...

My only choices are Single Life, 50% J&S, and 100% J&S. DW's folks outlive my folks by 5-15 years. DW elects to not get into the finances, so when I pass it has to be simple. Our plan and numbers were not as favorable to keep things simple when she loses me, her SS, and 50% of the pension, so I chose 100% J&S.