How do you value a pension in your net worth?

[Anonymous]

Npv

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am a federal employee, I joined the government in my early 20s and can retire at my minimum retirement age of 57 with over 30 years of service. I’m calculating at age 57 I’d have 33
years and my high 3 average salary would be around $200k so I could have around $66k in pension annual income for the rest of my life, more if I stay longer.

My DH didn’t join the government until his 40s so at 57 he’ll be closer to half that or $30k annually for life.

We do have over $1m in the TSP with several years to go and will both get the maximum SS, but when I see all of these posters with a lot more retirement savings I wonder if we’re behind or doing ok due to the pensions.

We are in a similar position and we have calculated that we will be able to have a comfortable retirement between pension and social security. We don’t plan to touch TSP unless absolutely necessary. Our idea of retirement doesn’t include extravagant tastes though.

We plan to do the same. Only about 130k/yr but it’s enough for us. No need to take money out of TSP/401k.

What do you do with the TSP money PP?

[Anonymous]

Check out empower.com (used to be Personal Capital). They have really good retirement calculators that let you input estimated pensions in addition to your assets and see how various scenarios play out. I’ve found it very helpful.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am a federal employee, I joined the government in my early 20s and can retire at my minimum retirement age of 57 with over 30 years of service. I’m calculating at age 57 I’d have 33
years and my high 3 average salary would be around $200k so I could have around $66k in pension annual income for the rest of my life, more if I stay longer.

My DH didn’t join the government until his 40s so at 57 he’ll be closer to half that or $30k annually for life.

We do have over $1m in the TSP with several years to go and will both get the maximum SS, but when I see all of these posters with a lot more retirement savings I wonder if we’re behind or doing ok due to the pensions.

We are in a similar position and we have calculated that we will be able to have a comfortable retirement between pension and social security. We don’t plan to touch TSP unless absolutely necessary. Our idea of retirement doesn’t include extravagant tastes though.

We plan to do the same. Only about 130k/yr but it’s enough for us. No need to take money out of TSP/401k.

What do you do with the TSP money PP?

We will probably give it to our kids or spend on long-term care if needed. If we find something to spend it on, we can do that too. It will be pretty significant amount.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't think you will get Social Security plus a government pension.

That is correct for the old plan. There is a SS offset. I think you get some of it though.

With FERS and anyone who joined the government after 1984 has FERS, you get full SS plus pension. As an employee you are paying just as much in to SS as you would as a private sector employee

Yes. Also, if you retire under FERS before you are eligible for SS, you get a supplement to your pension until you are 62.

https://plan-your-federal-retirement.com/fers-supplement/#:~:text=Special%20Benefit%20for%20Some%20FERS%20Who%20Retire%20Before%20Age%2062&text=The%20FERS%20Supplement%20is%20also,until%20you%20reach%20age%2062.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am a federal employee, I joined the government in my early 20s and can retire at my minimum retirement age of 57 with over 30 years of service. I’m calculating at age 57 I’d have 33
years and my high 3 average salary would be around $200k so I could have around $66k in pension annual income for the rest of my life, more if I stay longer.

My DH didn’t join the government until his 40s so at 57 he’ll be closer to half that or $30k annually for life.

We do have over $1m in the TSP with several years to go and will both get the maximum SS, but when I see all of these posters with a lot more retirement savings I wonder if we’re behind or doing ok due to the pensions.

We are in a similar position and we have calculated that we will be able to have a comfortable retirement between pension and social security. We don’t plan to touch TSP unless absolutely necessary. Our idea of retirement doesn’t include extravagant tastes though.

We plan to do the same. Only about 130k/yr but it’s enough for us. No need to take money out of TSP/401k.

What do you do with the TSP money PP?

We will probably give it to our kids or spend on long-term care if needed. If we find something to spend it on, we can do that too. It will be pretty significant amount.

If you live long enough, you will have required minimum withdrawals from TSP, like any qualified plan. You don’t have to spend it, but you will have to pay taxes on it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am a federal employee, I joined the government in my early 20s and can retire at my minimum retirement age of 57 with over 30 years of service. I’m calculating at age 57 I’d have 33
years and my high 3 average salary would be around $200k so I could have around $66k in pension annual income for the rest of my life, more if I stay longer.

My DH didn’t join the government until his 40s so at 57 he’ll be closer to half that or $30k annually for life.

We do have over $1m in the TSP with several years to go and will both get the maximum SS, but when I see all of these posters with a lot more retirement savings I wonder if we’re behind or doing ok due to the pensions.

We are in a similar position and we have calculated that we will be able to have a comfortable retirement between pension and social security. We don’t plan to touch TSP unless absolutely necessary. Our idea of retirement doesn’t include extravagant tastes though.

We plan to do the same. Only about 130k/yr but it’s enough for us. No need to take money out of TSP/401k.

What do you do with the TSP money PP?

We will probably give it to our kids or spend on long-term care if needed. If we find something to spend it on, we can do that too. It will be pretty significant amount.

If you live long enough, you will have required minimum withdrawals from TSP, like any qualified plan. You don’t have to spend it, but you will have to pay taxes on it.

Understood. We will have to keep an eye on it. I plan to convert to Roth after my retirement (up to max of my tax rate) so we can minimize somewhat.

[Anonymous]

three pages and still no one gives an answer...

[Anonymous]

Anonymous wrote:three pages and still no one gives an answer...

$2500/month payout = $500k for NW est purpose

[Anonymous]

OP, here you go:

https://www.sapling.com/8576639/calculate-present-value-future-pension

You can set this up on an Excel spreadsheet and play with some of the settings (ie, estimated interest rate, starting date of pension payments, and time in pension) and get an answer.

[Anonymous]

Anonymous
three pages and still no one gives an answer...

No several have answered. 66k/year is equivalent to about 1.6 m in 401k

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't think you will get Social Security plus a government pension.

That is correct for the old plan. There is a SS offset. I think you get some of it though.

With FERS and anyone who joined the government after 1984 has FERS, you get full SS plus pension. As an employee you are paying just as much in to SS as you would as a private sector employee

Yes. Also, if you retire under FERS before you are eligible for SS, you get a supplement to your pension until you are 62.

https://plan-your-federal-retirement.com/fers-supplement/#:~:text=Special%20Benefit%20for%20Some%20FERS%20Who%20Retire%20Before%20Age%2062&text=The%20FERS%20Supplement%20is%20also,until%20you%20reach%20age%2062.

This but you do not get the 10% multiplier (ever) or COLAS until you turn 62. The latter can be impactful over time.

[Anonymous]

I posted this in another thread but I highly recommend the mid career retirement seminar. It’s free and unlike the end of career seminar, you can take it more than once. They go over everything related to retirement from the federal workforce, including pretty specific potential scenarios (leaving and returning, for example).

[Anonymous]

Anonymous wrote:

Anonymous
three pages and still no one gives an answer...

No several have answered. 66k/year is equivalent to about 1.6 m in 401k

No way. That’s too high.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous
three pages and still no one gives an answer...

No several have answered. 66k/year is equivalent to about 1.6 m in 401k

No way. That’s too high.

DP.

???

That's exactly what I would have calculated.