Poll:How many here have a defined benefit pension?

[almost there]

defined benefit pension

defined benefit pension cola

No pension

(Not counting SS)

 

[TheWizard]

I have no pension, but I annuitized most of my employer contributions to my 403(b) plan with TIAA rather than keep that money as a tax-deferred accumulation.

As a result, I have a hefty retirement income stream that sometimes increases more than inflation...

 

[Dash man]

I have a pension of $1,384/month. Not much and has no cola. Combined with social security, I get a bit over $40k per year for breathing.

 

[Car-Guy]

Just SS and it's COLA'd

 

[razztazz]

A cola'd pension but I mis-clicked on non-cola'd pension

 

[scrabbler1]

I'm not old enough to begin collecting it, but I have a frozen pension awaiting me when I turn 65, about 6 years from now.

 

[Calico]

See thread from one year ago:

https://www.early-retirement.org/forums/f28/poll-do-you-have-a-pension-109239.html

 

[Deej]

DH has two modest pensions from the same company totaling $3,936/month ($47,244/year before federal tax, no state). It's all free money since he didn't pay in to it, but, I wish it had a cola.

 

[almost there]

See thread from one year ago:

https://www.early-retirement.org/forums/f28/poll-do-you-have-a-pension-109239.html

Thanks, didn't see it.
Explains a lot.

 

[martyp]

ER’d 11 years now with a COLA’d pension from the University of California. I got lucky. I retired in 2010. A few years later they reevaluated their policy and upped the minimum retirement age by 5 years. It looks like a 6.25% increase in a couple of months.

 

[Another Reader]

Two small cola'd pensions from stints with gubmit agencies. Colas have max percentages so less than the true cola most years. Also SS. And I maxed out the deferred comp in the second stint. Before deductions for insurance and IRMAA, the total pension and SS income is a little over $60k.

I remember a boss early on that strongly suggested maxing out the deferred comp. I couldn't afford it at that job but I could at the second one. That added up to a tidy sum as well. He was a very astute guy. Thanks, Bill!!

 

[Toast]

At 65, we will have combined pensions that are just shy of $40,000. Our pensions are cola'd and 100% spousal continuation.

 

[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.

 

[TheWizard]

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.

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

 

[6miths]

No pension here. I am impressed by the number of people who do have defined benefit plans. Partly, the bias introduced by the site I guess. I'm sure the poll will look different when someone redoes it in 20 years!

 

[W2R]

I worked for the federal government under the FERS retirement system, so I have the infamous FERS "diet cola" pension. It's only partially cola'd, so I voted "defined benefit pension", not "defined benefit pension cola'd". That's OK! It's small, just $822/month, but my portfolio grew enough during my first 12 years of retirement to compensate for the fact that my pension isn't fully cola'd.

Also the federal government encouraged those of us in the FERS system to contribute as much as we could to the TSP (=401K, more or less), and offered a partial match. I contributed the max every year so I have equal monthly payments from the TSP G Fund that are about the same as what I get from my diet cola pension.

Plus, I have SS, so everything is working out. Federal workers under the older CSRS system get a big, fully cola'd pension but IIRC they can't get SS so it's only fair that they should get more from their pension.

 

[Jerry1]

I could have taken a lump sum or a pension upon leaving my company. I took the pension. It’s not COLA’d. I did take the 100% survivor benefit. It nets me just under $30K per year. I felt it was good to diversify my income stream and given that it’s a pension, it’s covered by the PBGC. That plus our SS will allow us to get our withdraw rate under 2%.

 

[Out-to-Lunch]

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

You say that like it is a bad thing...

 

[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.

 

[Vacation4us]

I have 2 small pensions which will total $1400/ month in 10 years when I am 65. No Cola.

DH has a fat fire Cola’d pension from the State of California that he started collecting 1.5 years ago at 53. He was eligible for his full pension at 50 but loved the job. It also comes with 100% survivor and medical. New employees are eligible at 57 and their pension is capped at 137k

I would never be happy to lose my DH but don’t worry about the taxes I will have to pay if that happens.

Since we live on DH pension I voted pension w Cola

 

[MarieIG]

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]

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]

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...