Poll: Do you have a pension?

[RAE]

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.

Yep. I have a very modest pension, but I'm very happy to have it. All I have to do is stay alive in order for that monthly check to keep coming in.

 

[F.I.R.E User]

Technically I do but not sure if I would get anything. I worked partial 2005 and full 2006 year. Fidelity website says to call so I will do just that and find out.

 

[TheWizard]

Yep. I have a very modest pension, but I'm very happy to have it. All I have to do is stay alive in order for that monthly check to keep coming in.

Yes, I'm planning to stay alive until age 112 minimum ..

 

[F.I.R.E User]

Yes, I'm planning to stay alive until age 112 minimum ..

What if you live beyond 112?

 

[jazz4cash]

IMeant there is a good chance I won't outlive my money.

(A FIRE concept )

Ok. As long as it’s not because the end is near...

 

[RetireeRobert]

Got a fat state government pension with 2% max COLA (now at $8700/month), and SS of $1600/month, taxable account income federal tax free of $1200/month.

So, the RMD's required out of my tIRAs, of about $6700/month present me with the opportunity each year to decide to which 501c(3) charitable organizations to make Qualified Charitable Distributions to, and how much to give each one. Presents me with a gratifying but sobering need to discern what organizations reflect my values, and where and how I can make maximum impact to further those values. I am in the enviable position of being able to make sizeable enough donations to be very impactful to some organizations.

 

[1242Vintage]

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.

Thanks. As I was nearing retirement I met with a Social Security representative on this item. He reviewed my file, provided me with a written estimate, and confirmed that under current laws I will not impacted by WEP or GPO.

My wife on the other hand was a very part-time school teacher as her second career and unfortunately will be impacted.

 

[Montecfo]

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.

Ok, but the point I am making is somewhat different, although I realize the poll does not provide enough information to draw solid conclusions. But it *suggests* workers who do not draw pensions are far less likely to be able to retire early.

Most people here draw pensions according to the poll. Yet most workers do not have access to them (never did but it is worse now).

 

[Aerides]

Again, somewhat surprising that the "early" retirement board consists mostly of pensioners.

I would not draw that conclusion at all.

An unknown % of board members clicked on this thread and responded. 533 votes in several weeks is not a big sample of visitors.

 

[CardsFan]

Again, somewhat surprising that the "early" retirement board consists mostly of pensioners.

I would not draw that conclusion at all.

An unknown % of board members clicked on this thread and responded. 533 votes in several weeks is not a big sample of visitors.

And keep in mind many of the "pensioners" have mini or micro pensions.

Mine is $105/month

 

[latexman]

Ok, but the point I am making is somewhat different, although I realize the poll does not provide enough information to draw solid conclusions. But it *suggests* workers who do not draw pensions are far less likely to be able to retire early.

I’ll rephrase. On average, if person A draws two cards (investments and SS) and person B draws three cards (investments, SS, and pension), person A will usually lose.

 

[gooddog]

Regarding WEP and state/local pensions. If an individual is a safety employee, and has not contributed to SS for 30 years or more, SS gets cut by 5%/year for each year less than 30. The contribution to SS must fall under the criteria of 'substantial earnings'. There is a minimum $ amount per year (inflation adjusted) that a person must make for the year to count. Can't just get quarters to just get quarters in on the cheap. This was how it was explained to me by the SSA.

 

[Koolau]

I’ll rephrase. On average, if person A draws two cards (investments and SS) and person B draws three cards (investments, SS, and pension), person A will usually lose.

Heh, heh, sort of like that saying "All else being equal - but, of course, it never is."

I do see your point.

 

[brett]

I believe the bottom line is that those who are prudent managers of their financial affairs, regardless of their income, will prepare and save as best they can for their retirement. Pension or no pension.

Those who are not prudent may spend every dime and more that comes their way, regardless of their income level prior to retirement. And find themselves full of envy for others who have been prudent, who may have afforded to retire early, or those fortunate enough to have pensions. Nor is it about being 'lucky'

Pensions are not some sort of give away or lottery. They are part of a persons deferred remuneration. Often those in the public sector make less take home than those in the private sector. There is a reason.....part of that difference is attributable to pension participation.

 

[kcowan]

Ok. As long as it’s not because the end is near...

I live every day as if it is my last

 

[EastWest Gal]

No pension. I qualified for one from my first employer from 1988 to 1998. A laughably small amount. I rolled it over into my IRA. The medical organization was bought out x 2 after I left. I don't trust corporations. I am happy to be on my own and responsible for my financial future.

 

[2177V]

I believe the bottom line is that those who are prudent managers of their financial affairs, regardless of their income, will prepare and save as best they can for their retirement. Pension or no pension.

Those who are not prudent may spend every dime and more that comes their way, regardless of their income level prior to retirement. And find themselves full of envy for others who have been prudent, who may have afforded to retire early, or those fortunate enough to have pensions. Nor is it about being 'lucky'

Pensions are not some sort of give away or lottery. They are part of a persons deferred remuneration. Often those in the public sector make less take home than those in the private sector. There is a reason.....part of that difference is attributable to pension participation.

I have a federal pension and a Cal-Pers pension. I contribute between 6 to 9% of my salary for my pensions. Pensions are not free and they are like a mandatory 401k retirement account which people contribute part of their salary and sometimes the company provides some matching funds. You are correct in saying people in the public sector makes less take home pay than the private sector. SS is the same way. People contribute into SS and they reap some SS benefits. People who do not have a pension should plan for their retirement by putting part of their salary into their own retirement account. I do not feel sorry for the people who spend every dime they make and then they envy their neighbors who have a pension. Those same people do not realize that people with pensions already contributed part of their salary toward that pension and there is nothing to prevent them from contributing part of their salary toward a retirement plan.

 

[Calico]

I believe the bottom line is that those who are prudent managers of their financial affairs, regardless of their income, will prepare and save as best they can for their retirement. Pension or no pension.

Those who are not prudent may spend every dime and more that comes their way, regardless of their income level prior to retirement. And find themselves full of envy for others who have been prudent, who may have afforded to retire early, or those fortunate enough to have pensions. Nor is it about being 'lucky'

Pensions are not some sort of give away or lottery. They are part of a persons deferred remuneration. Often those in the public sector make less take home than those in the private sector. There is a reason.....part of that difference is attributable to pension participation.

Very well said.

 

[Koolau]

Those who are not prudent may spend every dime and more that comes their way, regardless of their income level prior to retirement. And find themselves full of envy for others who have been prudent, who may have afforded to retire early, or those fortunate enough to have pensions. Nor is it about being 'lucky'

I've mentioned my good buddy from w*rk. Though our assignments were different (he was hourly, I was professional) we made about the same/year. HIS DW made 2 or 3 times as much as my DW. HE got to retire YEARS earlier with a nice package. All his w*rking life AND retirement, buddy owned every toy out there - boats, cars, lake houses, RVs, motorcycles, etc.

I eventually retired with a good stash and roughly same pension as buddy. he took his SS early but it wouldn't have been a lot less than mine (except for the reduction due to taking it early.) His wife made enough to take SS on her own earnings. Buddy is currently half a mil in debt at 76. Close as buddy and I are, his envy occasionally shows through. I let it slip once how much my condo was worth. Buddy went through in detail what steps HE would take if he owned a paid-off asset such as my condo. NO, he wouldn't pay off his $500K debt. He'd cash-out mortgage (my) condo, buy a racing engine for his Camaro (and now Vette), upgrade his mortgaged-to-the-hilt house, buy a motorcycle, etc. etc.

Some never change, but YMMV.

 

[Perryinva]

People that live for today, often assume there is no long term tomorrow. (Or just don’t care) As long as they drop dead before tomorrow catches up with them, who’s to say who had more fun? I don’t condone it, but I’ve seen it go both ways, especially for people that are betting on a short life and win that bet.

I know it is apples and oranges, but I have $440k in debt but it is the 2.5% mortgage on my $800k house. Since that $2k/mo payment is less than 25% of my fixed income (not including investment income or paid off RE), that works fine for me. I don’t own a bunch of depreciating toys, however.

 

[Koolau]

People that live for today, often assume there is no long term tomorrow. (Or just don’t care) As long as they drop dead before tomorrow catches up with them, who’s to say who had more fun? I don’t condone it, but I’ve seen it go both ways, especially for people that are betting on a short life and win that bet.

I know it is apples and oranges, but I have $440k in debt but it is the 2.5% mortgage on my $800k house. Since that $2k/mo payment is less than 25% of my fixed income (not including investment income or paid off RE), that works fine for me. I don’t own a bunch of depreciating toys, however.

We all agree here that there is "good" and "bad" debt. My buddy has had both, but manages to turn "good" debt into "bad" to his own detriment. I agree that he can do what he wants and live as he desires. There was a time I would have faulted him strictly on the basis that he could end up leaving his DW in a bad fix if he goes first. BUT, she's a spendthrift as much as he is. She shops compulsively, buys knick knacks for the house, clothes for the 40+ year old kids and 20 year old grand kids.

He managed to get rid of a lot of debt by essentially saying "I'll 'commit' bankruptcy or you can forgive much of my debt." I think he used one of those "services." His big worry: "It'll ruin my credit!" Well, duh! Odd thing, he's back up to the same number of credit cards he had at the height of his folly. AND, between he and DW, they're all pretty much maxed out. Some don't learn - even though they've been "schooled." YMMV

 

[kcowan]

The good news is that the spendthrifts don't come here or don't stay.

ISTR one lawyer called us The Lumpen Slums of Cyberspace before leaving. I bet he still has debt!

 

[kcowan]

What if you live beyond 112?

i will write about it for pin money!

 

[purplesky]

Having a "living income" amount pension is a game changer.

I have always ignored my company pension expecting it to not be there.
My pension is now fully funded and my pension payment will drop every month once I pull the plug and retire.

With a "living income" monthly pension check in retirement your portfolio asset allocation completely becomes a non-issue.

 

[ugeauxgirl]

None- not even a little one. My husband either. I have pension envy!