Retiring before you have a full work pension

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would like to put some hard numbers on this because some people seem confused.

Let's look at FERS federal pension as an example. Let's say person A retires at 62 with 20 years of service and their salary at retirement (and high-3) is $100k. Their pension benefit (deferred until 62) will be $22k per year.

Person B works another 10 years, retiring at 72 with 30 years of service. Meanwhile, cost of living adjustments have brought their salary up to, say $110k. Their pension benefit will be $36k per year. So the difference will be about $14k per year for working those last 10 years.

That may or may not be "worth it" to someone, depending on their other financial resources, budget, and the value they place on their time. If you also have a 401k, and take social security, the pension at 62/20 years might be "enough" and they can enjoy their 60s in "early" retirement.

There is no one right answer of course. It depends on the individual circumstances.

And of course, other pension systems work differently, further confirming the notion that there is no one "right" answer to when to take your pension.

But person B didn't collect the pension for ten years while person A did. Not worth it.

Person A collected 22k for 10 years. 220 k extra. That's smarter.

[Anonymous]

Anonymous wrote:I guess you'll find out when you retire... I personally want as much money as I can get when I am no longer working.

I personally want as many retirement years as possible.

[Anonymous]

Not sure what your question is. I have a pension eligibile job that I freaking hate. I guess I just wasn't cut out for US gov't. So I've been there for 3 yrs -- if I can force myself to stay for 5 to get some min benefit, fine; but if a good job comes along tomorrow -- I'm out, don't care about vesting. And the thought of staying 20 yrs for that pension makes me cringe. Guess your sister has a point for people who stay for 18 out of 20 yrs.

[Anonymous]

Anonymous wrote:My sister cannot fathom that someone who has a work pension would retire before they get the full amount.
She doesn't get it at all.
For example, most pensionshere in Canada require 30 years before you get the max amount. She cannot get that someone may retire after 20 or 25 years in the plan.
I have a work pension and work part time, I will probably only have 15 years in the pensio and I don't care.
What gives?

Your sister is right.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My sister cannot fathom that someone who has a work pension would retire before they get the full amount.
She doesn't get it at all.
For example, most pensionshere in Canada require 30 years before you get the max amount. She cannot get that someone may retire after 20 or 25 years in the plan.
I have a work pension and work part time, I will probably only have 15 years in the pensio and I don't care.
What gives?

Your sister is right.

Not really.
She is just poorer than I am. Her pension will be her sole income, while I have multiple streams of income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My sister cannot fathom that someone who has a work pension would retire before they get the full amount.
She doesn't get it at all.
For example, most pensionshere in Canada require 30 years before you get the max amount. She cannot get that someone may retire after 20 or 25 years in the plan.
I have a work pension and work part time, I will probably only have 15 years in the pensio and I don't care.
What gives?

Your sister is right.

Not really.
She is just poorer than I am. Her pension will be her sole income, while I have multiple streams of income.

I think you just answered your own question. Try for some empathy

[Anonymous]

Anonymous wrote:My sister cannot fathom that someone who has a work pension would retire before they get the full amount.
She doesn't get it at all.
For example, most pensionshere in Canada require 30 years before you get the max amount. She cannot get that someone may retire after 20 or 25 years in the plan.
I have a work pension and work part time, I will probably only have 15 years in the pensio and I don't care.
What gives?

This forum is based in an American city. We don't get a national pension. Perhaps find a forum for canadians.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My sister cannot fathom that someone who has a work pension would retire before they get the full amount.
She doesn't get it at all.
For example, most pensionshere in Canada require 30 years before you get the max amount. She cannot get that someone may retire after 20 or 25 years in the plan.
I have a work pension and work part time, I will probably only have 15 years in the pensio and I don't care.
What gives?

This forum is based in an American city. We don't get a national pension. Perhaps find a forum for canadians.

This has nothing to do with a national pension. This is a private work pesnion.

[Anonymous]

I want a pension

[Anonymous]

DH and I will both have a pension, however DHs will be a greater percentage because he will work 30 years. I will only work 20 years. But as someone else said, we are saving for retirement so we are comfortable with our plan.

[Anonymous]

Some people are just greedy.

[Anonymous]

I’d like to find a job where I could work part time and then collect a pension. OP, can you share the workplace?

[Anonymous]

Anonymous wrote:I’d like to find a job where I could work part time and then collect a pension. OP, can you share the workplace?

I'm an RN.

[Anonymous]

We have a defined retirement plan where I work and literally everyone shoots for reaching the maximum (90%) unless they started to late in life or go out on a disability retirement first.

[Anonymous]

I'm a teacher in another state. I took off many years to be home with my children when they were young and have some years in parochial schools. I'm 47 and have 13 years in the system. I "can" retire when I'm 55 with 20 years (for me it'll be 21), but I only get 2.2% per year of my final salary (actually the average of the final 4 years). Or, of course I can continue after that an increase my pension. And yes, I've been saving outside of my pension since I was 21. I'd love to leave teaching and do something else, but I feel stuck. The pension is far too good to leave. If I can make it till 62-63, that'd help a lot. If I can't, I'll "retire" from teaching at 55 and go do something else. Maybe teach in a private school or maybe tutor or something.