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[quote=Anonymous][quote=Anonymous]Help me understand my pension numbers. I want to know how I am doing compared to those who have a 401k. I don't think I am doing that great, but I am thankful for the "safer" job. It just means I need to start investing in other type of investments because as of now I just have a 529 for my son (I have never been married I am single), an 8 months emergency fund, and my pension. My only debt is a monthly car loan. And I rent. As far inheritance, I guess I will inherit my parents home. I am their only child. But thankfully they are in amazing shape both 70, so they will be around for awhile crossing fingers.

So I am 46 and I have been with my employer for 14 years. For example, If I leave this summer and take cash the amount will be $200k or  if I defer and take the pension at 62 the amount will be 25k/year pension. But If I take the pension instead at 60 or 65 respectively, the yearly pension amounts will be $59k/year or ($27k year and $327k lump sum), and [b]at 65 [/b]the yearly pension amounts will be $65k/year or ([b]$31k/year and $425k lump sum[/b])

I am just trying to figure out if I had a $401k instead, what would be the equivalent amount? Most people have a 401k, so I am just want to know how I am doing compared to most.

My guess is perhaps the $200k cash amount would be the 401k equivalent. If yes, that's a disaster and either I leave NOW and take a higher paying job elsewhere if I can find one at my age , or stay until 62 (assuming of course I am not laid off by then) and take the lifetime pension.[/quote]

My friend stay where you are. $31k/year and $425k lump sum even without social security or any type of IRA account, you will be able to live a very basic retirement in a LCL area. In that scenario the $425k lump sum, you can put the proceeds after paying for taxes into safe investment accounts and live off the monthly interest.

And if you start a ROTH this year and max it for the next 20 years that's going to be even better.

I'll say if you stay in place until retirement, as of today you are closer to folks who have about $1.2 million in their 401k  [/quote]

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