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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][b]But a government guaranteed pension of $60k a year until you die is worth exponentially more than the estimated value of what you'll likely actually pull out[/b].  Let's say actuarial tables estimate you'll only live 20 years after retirement, so you're talking about $1.2million of pension payments (let's ignore inflation to keep it simple).  But you MAY live 40 more years.  Which is $2.4million.  If you don't have a pension, you have to put aside NOW so much more money than $2.4million if you want to guarantee yourself $60k a year until the unknown date that you die.  You have to protect against inflation, market swings, etc.  So the fed pension is worth a LOT more than the actuarial value of it.  [/quote]

This is what I've intuitively thought.  I would love to see the hard numbers in some sort of online calculator or something. [/quote]

So, you're assuming that you will make approximately $190K for your top three years and that's how you'll end up with $60K/annually for life?  It's unclear your age, but that's a good amount of COL increases and step increases to end there. [/quote]

I'm not OP, sorry for the confusion.  I was assuming high-3 was 165,000, but now that I look at the salary table again, I see that it tops out at $161,900.  I'm only six steps from there.  [b]I ran it again and I [i]think [/i] I'm doing the calculation correct (1.1% x 161,900 x 32).[/b] [/quote]

I thought it was the base salary, and not the adjusted COL salary? So, for instance a 14 step 1 in DMV is $115K, but the base may only be $80K.[/quote]

I'm not 100% sure, but are you confusing base salary with basic salary?:

Your basic pay is the basic salary you earn for your position. It includes shift rates and locality pay; but does not include COLA, overtime or bonuses.

http://www.plan-your-federal-retirement.com/fers-pension

[/quote]

Sorry, yes. So, then it would include the DMV 27% locality pay? I though that I saw on OPM it does not, but I could be very wrong. I still have 28 years left until retirement![/quote]

Then do the math properly. 30 years until retirement is a long long time. I used to work in government and thought similarly, now, ten years out, I am set to clear about $600K a year. That's basically 3x the value of a single year in government, and of course, putting away $200K a year towards retirement means that in less than 10 years you can easily amass a small fortune, plus interest for 30+ years. To say you could enter retirement with $10M is pretty reasonable [/quote]

Thanks. I'm a new poster btw, not op.[/quote]

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