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[quote=Anonymous][quote=Anonymous]I just realized that it may make more sense to think about the numbers in terms of 2022 dollars.

Again, for simplicity assuming 4% annual inflation and that fed salaries and inflation keep pace:

Retiring at 62 as a fed: ~$52,000 in 2022 dollars
Retiring at 65 as a fed: ~$57,500 in 2022 dollars
Retiring at 68 as a fed: ~$63,500 in 2022 dollars
Deferred retirement at 62: $16,400 in 2022 dollars[/quote]

Right so that’s about $30k more pension, which represents about $750k in capital assuming 4% withdrawal rate to save that over next 15 years she would need probably about $40k/year assuming investing in low risk/slow growth assets.

So basically any job paying $30k-$50k more salary simply replaces the pensions — assuming she even can make it 15 years in that private sector job (depends on how ageist your industry is). To be worthwhile You would like for a boost of $75k or maybe $100k to a) make it after tax dollars you are saving and b) boost savings to hedge against being laid off prior to 62 or so. [/quote]

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