I know more than a few engineers that qualified for a very nice ERP, with healthy pension & excellent severance & HC benes, that already had over 30years, past age 60, etc. that didn’t take it because either their wives didn’t want them at home or they didn’t want to stay home with their wives or live in inlaws/adult children etc. They are defined by their w*ork.
Poll: Do you have a pension?
- Thread starter qwerty3656
- Start date
Koolau
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Yeah, I was thinking the same thing. I would agree it's not a "top tier" number, but lots of folks would think it at least adequate as pensions go - especially at 55. That's why my comment on defining the word "small" - just as we've attempted to define things like "rich" and "enough." Just one more thing in a long line of YMMV.
Yes its roughly a portfolio of around $900,000 paying you a monthly guarantee.
My 30 year monthly amount is around a portfolio with 1.25 million paying out a 4% withdrawal rate.
Its enough to make a difference.
Koolau
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
$3100 for most folks would easily qualify for one leg of the 3 - legged "stool" of retirement income. One might expect almost that much again from a full SS payment at FRA. If you have a $Mil as your stash (40/60 to 60/40) you could probably pull almost 4%. Pretty soon, you're looking at the better part of $100K/year. (Like the old commercial) Not a fortune but "adequate." YMMV
teetee
Full time employment: Posting here.
- Joined
- Jul 11, 2019
- Messages
- 679
Between 2010 and 2020, annual avg SP 500 return rate is 13.6%.
That means $300,000 invested at the beginning will yield $3400 per month.
Certainly one of the three legs of a stool for those who retires with $1M net worth.
That means $300,000 invested at the beginning will yield $3400 per month.
Certainly one of the three legs of a stool for those who retires with $1M net worth.
Maybe to some people $100k/yr in retirement income is small? That would be a pretty good disconnect IMHO, but I’m sure they exist.
Just curious, (doesn’t apply to me) but has anyone here actually taken the lump sum offered by their pension provider and then purchased an annuity with it, even if they added some of their own cash, to provide themselves with their own personal pension?
Just curious, (doesn’t apply to me) but has anyone here actually taken the lump sum offered by their pension provider and then purchased an annuity with it, even if they added some of their own cash, to provide themselves with their own personal pension?
Dash man
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
DW took a lump sum and rolled it into her 401k. Between dividends, my $1,385/mo pension and interest we generate ~$100k of income. That excludes any selling of shares.
bada bing
Full time employment: Posting here.
I have taken lump sum offers on 2 corporate pensions and have one in deferral. In all 3 cases the pension payout terms are better than a direct comparison with taking the lump sum and investing it in a SPIA. The difference I've seen is between 10% and 25% higher monthly payments from the pensions. From what I've read that is fairly typical. It would be interesting to hear from anyone where the opposite was true.
jazz4cash
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I condidered taking the lump sum and waiting for rates to rise making an annuity more attractive (market timing I guess). That was 6 yrs ago and rates haven’t gone up. The main reason I did not take the lump sum was that megacorp subsidized the Survivor benefit. I could match the single life annuity payment but the cost for a survivor benefit was much higher at places like immediateannuities.com. The Megacorp docs showed a relative value score for each pension option. The single life was 100% but the survivor option was 107%. The others were 90% or less
skyking1
Thinks s/he gets paid by the post
congrats spanky!
My "small" pension is 'bout three hunnert' [/Brad Pitt from Thelma and Louise] i think that meets the common criteria for small.
My "small" pension is 'bout three hunnert' [/Brad Pitt from Thelma and Louise] i think that meets the common criteria for small.
Last edited:
Montecfo
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Again, somewhat surprising that the "early" retirement board consists mostly of pensioners.
jfn111
Thinks s/he gets paid by the post
The pensions allowed a lot of people to retire "early".
Koolau
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I at least understand where you are coming from. I got sucked into this site by accidentally finding the John Greaney site that emphasized a roll-your-own approach (saving/investing - who needs a pension?) Bail at 32 or whatever.
So maybe it WOULD seem unlikely that most of us have a pension. Guilty as charged. BUT, before my pension vested, I did my best to be ready - just in case it never did (I could have been fired, could have decided my sanity would no longer survive another day and quit, etc.) That's how I got here - I started trying to emulate Greaney. Then, I DID stay for the pension and HC supplementation. What can I say? Maybe I didn't have the guts I needed. Also, explained often, I suddenly ended up doing something I liked (what a concept!) at w*rk. We shouldn't poo-poo your question though IMHO. It's valid to at least ask. YMMV
Congrats on your wonderful pensions. Wow. Are you aware of the WEP and GPO provisions in relation to Social Security benefits (how they are impacted by your government pensions)? These laws greatly impact my husband and myself, so much so that I will not receive a spousal or survivor benefit from DH’s Social Security. Also, his SS benefit is reduced by $330/month due to the WEP. I find that many people who have/will have government pensions are unaware of these two very important laws.
jollystomper
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Apr 16, 2012
- Messages
- 6,223
In the past some Megacorps allowed you to collect pensions fairly early. I started at Megacorp at 21. by age 51 with 30 years I was eligible to retire with a pension. It was not small at that point, and with a lower desired lifestyle I could have retired, but chose to keep working for 9 more years so it grew to support our desired retirement lifestyle (and I liked my job so it wasn't a chore).
jimnjana
Thinks s/he gets paid by the post
Two military pensions,DW SS, and two V
VA Disability payments, rental income and interest income on a note we hold. Our retirement savings are for LTC at this point. Total about $150K annually.
VA Disability payments, rental income and interest income on a note we hold. Our retirement savings are for LTC at this point. Total about $150K annually.
Koolau
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Several folks here over the years have commented on the WEP and GPO provisions as it applied to their gummint pensions. I understand it can be a substantial effect (never in gummint service myself - except paying all those taxes
) I would doubt too many folks here to whom it applies would be blind sided by it personally if that was a part of your question.(?) YMMV
latexman
Thinks s/he gets paid by the post
On average, if person A draws two cards (investments and SS) and person B draws three cards (investments, SS, and pension), person B will usually win.
stepford
Thinks s/he gets paid by the post
When comparing the value of a pension to savings I ( like many here) use immediateannuities.com to estimate the equivalent cash value. It's been a while since ive done so and I just found that, much to my surprise, my pension is now 'worth' 20% more than the day I started drawing it - despite me being almost 5 years older and having drawn those years of payments from it. Interest rates must be REEALLY low for that to happen.
Timeisprecious
Recycles dryer sheets
Geeeez - must be nice! My DW didn't have much chance to make income, what with various health problems (e.g., well over 10 years fighting brain cancer) and other concerns along with filling the primary role in raising the kids. My own government pension totals a little over $7K/mo and I thought I was doing well! I'm hoping to see a raise of a little over $1K/mo soon, but even in the absence of that we're still not touching much of the egg; only for things we really want. It's really super to be debt free with home & auto fully paid. We'll also draw Social Security in a few years but who knows what'll happen with SS, right? I'm very thankful - it's a retirement I didn't think we would have once upon a time.
kcowan
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
IMeant there is a good chance I won't outlive my money.
(A FIRE concept )
Koolau
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Rereading this I had periods where I loved my j*b and periods where I became nearly catatonic because I didn't want to go in for weeks - heck years - at a time. It occurred to me that "liking" what you do is even more blessed than a pension, but very much a YMMV.
youbet
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I certainly agree that liking what you do, how you're spending your life, can be more important than money (within reasonable constraints). It's so, so sad to read stories here on the forum posted by folks who spent years and years of their lives loathing what they did with their time. That is simply life's capital (time) being pissed away. And unlike investments, once lost/wasted/squandered, time never recovers.
And, yes. YMMV.
