Poll:How many here have a defined benefit pension?

[Niuatoputapu]

Only Social Security for me.

DW was a SAHM for a decade and then a public-school teacher. She has a $2400/month COLA pension and just $500/month SS. The total take is slightly better than what a career paying into SS would have been.

The pension downside includes GPO (government pension offset) of SS survivor benefits if I kick it early. Her pension is small enough so that GPO will not eliminate SS survivor benefits, especially if I wait until age 70 to claim. (Potential survivor benefits grow more than GPO growth while I delay claiming).

 

[MarieIG]

I did 100% as well (also TIAA) so no spousal waiver; but both my wife and I did have to sign the forms that I submitted and we had to have them notarized. My friend's wife is introverted and conflict adverse, so I am guessing she agreed readily to whatever he decided. I feel bad for her--she doesn't have much in assets of her own.

-BB

Yes, a notarized waiver is usually required nowadays. It may have cut down on the problem, but it seems that a certain amount of spouses automatically go along with the pensioner's decision - without thinking it through.

There was a post a while back, maybe a year ago, where a new retiree (with a pension) fell off a ladder. Left his wife with no source of income.

 

[Arkgolfer]

I will start drawing my Cola'd pension in 13 months. I'm heading into my last year of work, after 34 years it's time to turn the page.

 

[Phroig]

I’m still working, but I’ll have a pension. The pension is non-COLA, but our system/legislature does occasional ad hoc increases.

 

[TheWizard]

If I do not take 100% J&S pension, MegaCorp requires DW to sign a Spousal Waiver, AND have it notarized. But, no need, I'm onboard 100% J&S pension.

Same thing with TIAA if married and try to do a single life annuity. That's what I have, but I wasn't married anymore when I retired...

 

[Dash man]

This!
I recently learned from a good friend that he converted his substantial TIAA lifetime cash accumulation to a single life annuity. He's married.
I asked why not he didn't ensure that his wife was protected and he said that given her health (she's TYPE I diabetic) he thought he would outlive her and so took the higher amount. It shocked me that he made that risk/benefit calculation and came out on the side of putting all the risk on his wife.
-BB

Yes, not a good choice IMO. My DFIL is a type 1 diabetic and will be 89 in August. He doesn’t even take very good care of himself!

 

[aboatguy]

I currently receive my military retirement (COLA pension 1)
When I turn 62 I will be eligible for a FERS retirement check (Diet COLA pension 2)
My wife and I live on my military retirement so we have been maxing out our ROTH IRAs, TSP and the rest goes into various taxable accounts so it should an income stream (UnCOLA stream 3)
Wife and I will both qualify for Social Security (COLA income stream 4 and 5)

I've been OMYing it since my wife's family is extremely long lived and most of my retirement goes away when I die and I really don't want her to be on the Petfood diet when I'm gone.


Mike

 

[ejman]

I have a magnificent, BTD non COLA'd pension of $396.00 a month from the PBGC.

 

[RockyMtn]

Two non cola'd pensions. Took one ($36k per year, 75% survivor) at 60. Other smaller ($15k Zero survivor) kicks in next year. Happy to have both!

 

[Animorph]

DW had a pension but we took a decent lump sum and rolled it into her tIRA. So I went with no pension.

 

[skyking1]

If I do not take 100% J&S pension, MegaCorp requires DW to sign a Spousal Waiver, AND have it notarized. But, no need, I'm onboard 100% J&S pension.

My Union's default is 75% survivor, and would require a signoff for less. My pension is about 60% yours with 100% survivor benefit, about 48K a year.

 

[Sue J]

DH has a public employees pension. 3% fixed COLA, based on the initial pension amount. Next month is his 12 year retirement anniversary so that accumulated COLA has really had an impact. We chose the option of a reduced amount so that I could have 100% if I survive him. The downside is that he is affected by WEP and GPO so he will never get any of my SS benefit.

So far, we do very well on just his pension. Life is very good!

 

[pacergal]

DH and I both have pension, 2% capped COLA, took 100% joint/survivor options at retirement.
DH worked 30 years in criminal justice, I worked 35 years in public health.
Blessed to have the pensions, but we worked for them!

Also have SS on board.

 

[skyking1]

That is great Sue. DW is 4 years younger and will take SS before I do, so I can delay to the max.

 

[SnowballCamper]

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.

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

Mike

This isn't the case. Here is the link for the COLA calculation for military pensions. Regular pay increases certainly depend on congress each year. However the cola is just arithmetic.

https://militarypay.defense.gov/Pay/Retirement/cola/

 

[rodi]

I have not one, but TWO defined benefit pensions. They were frozen years before I retired and together, add up to about $450/month. No COLA.

It pays the utility bills. Water, gas/electric, cell phones, etc.

 

[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.

That's why "What is your % withdrawal rate?" questions aren't very helpful. There is some percentage of people who get all their retirement income from savings but I'm guessing it's a low percentage. Pensions are getting rarer but Social Security isn't.

It's one of the few weaknesses of ER.org, but the only solution I know would be to encourage everyone to indicate same in their sig line, but that's probably not going to happen. SIRE vs FIRE leads to wildly different answers, but the person asking AND the person answering usually don't know how they compare to the other. Unfortunately that sometimes leads to misplaced guidance.

 

[almost there]

It's one of the few weaknesses of ER.org, but the only solution I know would be to encourage everyone to indicate same in their sig line, but that's probably not going to happen. SIRE vs FIRE leads to wildly different answers, but the person asking AND the person answering usually don't know how they compare to the other. Unfortunately that sometimes leads to misplaced guidance.

Again, you nailed it. (Had to look up SIRE, had not heard of it)
Almost need two platforms, as the two have so little in common.
In regards to advice etc. Have been trying to pinpoint why some responses were so different. This explains it completely. .
Have been in the FIRE camp the past 10 years. Seems there are fewer of us here than ever.

FIRE - portfolio, business/rental income, sale of property, PT work, etc (Financial Independence, Retire Early )
SIRE - Soc Sec, pensions, annuities, inheritance (What's the S for ?)

 

[latexman]

I have not one, but TWO defined benefit pensions. They were frozen years before I retired and together, add up to about $450/month. No COLA.

It pays the utility bills. Water, gas/electric, cell phones, etc.

DW has a mini-pension from the same MegaCorp as me. $100/month and no COLA. It'll be our beer money. Oh, excuse me, it'll be her beer money!

 

[skyking1]

I have not one, but TWO defined benefit pensions. They were frozen years before I retired and together, add up to about $450/month. No COLA.

It pays the utility bills. Water, gas/electric, cell phones, etc.

Lol I've always joked that my little pension will probably pay for our mobile phones. I see that the pin number for that account is in the mail today and I'll get a chance to look at it. I'm pretty excited nonetheless. I haven't worked in that trade since 1997?

 

[Sue J]

Again, you nailed it. (Had to look up SIRE, had not heard of it)
Almost need two platforms, as the two have so little in common.
In regards to advice etc. Have been trying to pinpoint why some responses were so different. This explains it completely. .
Have been in the FIRE camp the past 10 years. Seems there are fewer of us here than ever.

FIRE - portfolio, business/rental income, sale of property, PT work, etc (Financial Independence, Retire Early )
SIRE - Soc Sec, pensions, annuities, inheritance (What's the S for? Social? as in Taxes' ?)

SIRE = Secure Income Retired Early.

To me that means an automatic stream of income (monthly pension, Social Security Benefit) that you don't have to manage, unlike those who have to manage their investments and withdrawls.

As long as you keep living/breathing/beating that secure income keeps coming in.

 

[skyking1]

My little side pension is about as defined as it could be.
You can't take it early, there's no point in taking a late, there's no survivor benefit. It is x number of dollars starting at 65.

 

[cbbennet]

My late husband's of $366 per month. No cola. I took his SS when I turned 62 (after heart attack) and will take my SS at 70. Both have cola.

 

[Mulligan]

Again, you nailed it. (Had to look up SIRE, had not heard of it)
Almost need two platforms, as the two have so little in common.
In regards to advice etc. Have been trying to pinpoint why some responses were so different. This explains it completely. .
Have been in the FIRE camp the past 10 years. Seems there are fewer of us here than ever.

FIRE - portfolio, business/rental income, sale of property, PT work, etc (Financial Independence, Retire Early )
SIRE - Soc Sec, pensions, annuities, inheritance (What's the S for? Social? as in Taxes' ?)

Yes it is two different worlds. My pension is more now than I ever made working thanks to COLAs. And I am saving more than I ever have. Basically am saving for retirement after I retired, and will always have a 0% withdrawal rate as I have no money in IRAs. Just Roth and an HSA. So my withdrawal rate is skewed from the pension and irrelevant to most. I know several people with negative net worths (not accounting for the house) that live just fine in retirement because the COLA part of the pension will allow that.

 

[stepford]

Having a non-COLA pension I always assumed in my first years of ER I would live mostly off the pension and later, as inflation eroded the value of the pension, I would live mostly off my savings. I guess that transition is now occurring a bit sooner than I expected.