Poll:What are your sources of retirement income?

[martyb]

I will have a COLA'd DB federal employee pension once I retire, whenever that may be. I'm actually eligible in 7 months, when I reach age 55. I will have 36 years at that point.

At age 60 (5 yrs) I will begin drawing a military reserve retirement (pension) which will also be COLA'd, that will be approximately $15000 per yr net, before deductions for tax & survivor's bens. I'd be really lucky if it was close to $1000 per month net, maybe slightly less.

At 62, I'll get a minimal SS payment of around $250 or so per month. That's about it for my pension income situation.

Wife will get SS starting in 2022.

We have some savings, and are trying to determine whether to spend some of it to avoid having a mortgage after retirement, since the pension income's not going to be all that much.

 

[jclarksnakes]

Very interesting results. Based on what I read on this forum I would have thought there would not be so many private company DB pensions.

 

[Alan]

4 private pensions, all non-COLA, 2 from the UK.

On year 1 of ER they made up 62% of our spending, the rest comes from our investments. (psst... Wellesley)

None of the companies continue to offer DB pensions. (The company I retired from in 2010 stopped their DB pension plan this month).

 

[Katsmeow]

I took the question at face value. What do you have?

Poll dosen't alow for multiple answers, anyway ...

Are you making a distinction between what my DH has and what I have? We don't make that distinction as we live in a community property state so even though it is in his name, it still also belongs to me.

 

[lhamo]

No pensions for us. We started our professional lives relatively late (me at 30, DH at 40), and have only had 403bs and IRAs available to us. And because there were many years when we didn't really get any tax advantage to contirbuting to the 403bs, there was a span of several years where we kept much of our savings in cash, as we were saving up to buy a home. But since 2007 we have been contributing the max, though, which in our case comes to over 40k/year --and over 50k/year including employer match on the 403b and our Roth contributions (where we put any and all US earned income -- usually 4-6k/year).

A pension would be nice if you are in a field/work for an employer where you are happy to be in it for the long term. If my current employer offered a pension I would be happy, as I am quite happy here. Not sure I'd be willing to endure the frustrations of working for the government in order to get a pension, though -- I work as a government contractor now, and see a lot of dysfunction and unhappiness in my USG-employed colleagues. Our organization has its own dysfunction, of course, but overall it seems to be a better place to work, at least my particular office is that way.

 

[Danmar]

I start my private DB pension in a couple of months although I have been retired for about 6 years. The pensipn is very large ( mid 6 figures) and will represent about half our spending. The last 6 years have been financed through incentive compensation awards(mostly options). Certainly not typical, I know. It has been quite a planning exercise to forecst ultimate portfolio size given the leveraged nature of the options and the long period of cash outs coupled with relatively high spending over the period. The pension really has been a key part of the whole plan.

 

[Ronstar]

No pension for me. But I'm in illinois, so I can still quit my private job and get a public job and probably retire with a full pension in less than a year.

 

[MichaelB]

No pensions here.

 

[Walt34]

Okay, I'll go out on a limb here. I get a COLA'd county government pension, we stay in the group health insurance plan for 30% of the premium, and that includes prescription coverage and most dental work. I paid 7.5% of income into that and 7.5% into SS, which I haven't applied for yet. Medical insurance becomes secondary to Medicare at 65.

When I retired I choose a spousal benefit option, and an option that at age 62 the county pension dropped by the then-estimated SS benefit, which turned out to be low by about $200/month. The idea was to keep a more-or-less level income.

And after reading all the posts in this and other threads here, I am very, very, grateful to have all that. All those midnight shifts are paying off.

BTW, just like the federal system, the county does not offer that plan any more, and for the same reasons.

 

[CyclingInvestor]

No pensions, all income from stock dividends, mostly in IRAs accessed via 72t.

 

[rescueme]

Are you making a distinction between what my DH has and what I have?

Yes; for instance, DW has too small DB pensions that start in less than a year, but they are single life with no spousal benefit (her decision, to maximize her benefit and also she knows that I don't need the money if she passes first). I have no claim nor intend to on that income and I'll "sign off" on the paperwork shortly before the pensions start. It's no different than when she signed off on my 401(k) assets when I retired, that "allowed" me to invest (in this case, an SPIA) as I wished. Of course the SPIA is joint, so she will get full payments assuming I pass first. Just because you are in a community property state does not mean that you don't have "singular investment options", assuming you remain married (and alive of course).

Just because you have a pension (under any "system") it depends on the condition of that pension or any other retirement income.

Of course, she reminds me, "what's hers is hers, and what's mine is hers ". I guess that's just an adjustment to the cost of loving. BTW, she's worth it...

 

[ohyes]

DH and i each have two COLA'd pensions. His are $210.00 and $1661.00.
My first checks are due the end of this month and should be about $164.00 and $2000.00 (2300+ before high-deductible insurance premium is automatically deducted).

AR teachers have 6% of gross pay taken out for state retirement.
We will be tapping into 403b until DH starts SS in a few years. We have places to go and people to see.

 

[nun]

So the poll results imply that most people considering ER have defined benefit pension plans. Of course that has to be convolved with the fact that the demographic on here is probably biased to 50 and above and DB plans were a lot more common during their careers than they are now......also if i asked the same question 50 years from now no one would have a DB plan, but would the number of people considering ER have fallen dramatically because of the death of the DB pension?

Does the zeitgeist of ever increasing retirement age suggest that this ER forum will end up with very few members.......

 

[rescueme]

Does the zeitgeist of ever increasing retirement age suggest that this ER forum will end up with very few members.......

OTOH, arguments will be fewer and site response time will be shorter. There's a silver lining in every situation ...

BTW, on a personal note I don't believe that there will be any less ER folks. As in all things, "nature" will find a way...

 

[nun]

DH and i each have two COLA'd pensions. His are $210.00 and $1661.00.
My first checks are due the end of this month and should be about $164.00 and $2000.00 (2300+ before high-deductible insurance premium is automatically deducted).

AR teachers have 6% of gross pay taken out for state retirement.
We will be tapping into 403b until DH starts SS in a few years. We have places to go and people to see.

In MA state workers make 9% (or 11% if they earn over $35k) mandatory contributions to the state pension plan. MA kicks in 5%. Medicare tax is also taken out of the paycheck, but not SS tax, so MA state worked do not receive federal SS when they retire.

 

[W2R]

So the poll results imply that most people considering ER have defined benefit pension plans. Of course that has to be convolved with the fact that the demographic on here is probably biased to 50 and above and DB plans were a lot more common during their careers than they are now......also if i asked the same question 50 years from now no one would have a DB plan, but would the number of people considering ER have fallen dramatically because of the death of the DB pension?

Does the zeitgeist of ever increasing retirement age suggest that this ER forum will end up with very few members.......

It has been tough for early retirees at various times in my lifetime, IMO, for various reasons. Can you imagine retiring early during the crazy, seemingly out of control and endless inflation of the 1980's? I think that would have taken more guts than I can summon. I have great respect for anyone who managed to retire at that time, just as I have for our present members who had their expected pensions frozen or yanked just before they qualified for them, and others too who have had monumental obstacles of all sorts to overcome. Early retirement is not any easy path to follow.

 

[rescueme]

Early retirement is not any easy path to follow.

Heck, that's why I have hair on my breasts ...

 

[ziggy29]

Very interesting results. Based on what I read on this forum I would have thought there would not be so many private company DB pensions.

I suspect for those who are much younger (mostly under 40, I'd say) there will be far fewer. I was just old enough to get in with 11+ years of service before they froze the pension. I doubt $650 a month will buy much in 2030 when I turn 65 (and it *will* be $650 regardless of inflation, no adjustments), but you never know. If it buys even half as much as it does today, the economy will probably be in trouble for a long time...

It also looks like a considerable number of those who have private sector DB pensions were around long enough to either be grandfathered into the plans or at least accrued enough service to get *something* when the pensions were frozen and/or eliminated for new hires.

 

[Lsbcal]

...(snip)...
Does the zeitgeist of ever increasing retirement age suggest that this ER forum will end up with very few members.......

Could be there will be ever increasing FIRE wannabe's.

 

[Lsbcal]

It has been tough for early retirees at various times in my lifetime, IMO, for various reasons. Can you imagine retiring early during the crazy, seemingly out of control and endless inflation of the 1980's? I think that would have taken more guts than I can summon. I have great respect for anyone who managed to retire at that time, just as I have for our present members who had their expected pensions frozen or yanked just before they qualified for them, and others too who have had monumental obstacles of all sorts to overcome. Early retirement is not any easy path to follow.

A minor point, I think you mean the 1970's W2R. The 1980's were characterized by a great stock market and real bond rates that we will probably never see again. Plus rates were coming down making for bond capital gains. Actually the good times started in late 1982.

 

[Chuckanut]

The poll needs an option for a 'waiter' - somebody who is waiting for a wealthy realtive to die and leave them an inheritence.

 

[rescueme]

The poll needs an option for a 'waiter' - somebody who is waiting for a wealthy realtive to die and leave them an inheritence.

Sounds more like a "wishing and hoping" kind of indivudial.

BTW, I received what I was expecting (from my parents, long gone as of this date). Nothing.

At least I planned for my future, without their "bequest" ...

 

[easysurfer]

I selected none of the above as the majority is from my own investments, but that wasn't one of the options listed.

 

[nun]

I selected none of the above as the majority is from my own investments, but that wasn't one of the options listed.

I include the "none of the above" option to cover your situation. I was interested to see the proportion of people who have DB plans and of what type

 

[scrabbler1]

Nun, I interpreted the poll's question to pertain to various types of DB pensions regardless of how large they are, regardless of if they are frozen or not, regardless of if they have COLAs or not, regardless of if we are currently collecting them or not, and regardless of the portion they are (or will be) of our total retirement income. I suppose this is why I am surprised at how many answered "none of the above" but to each his own.