Reply to Quantifying Value of Federal Benefits for Private Sector

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[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.  I ran it again and I [i]think [/i] I'm doing the calculation correct (1.1% x 161,900 x 32). [/quote]

Absent qsi, six steps is wayyyyyyy in the future.[/quote]

We get step increases every year. [/quote]

Oh,  nevermind.  I see what you mean re: within grade increases. https://www.opm.gov/policy-data-oversight/pay-leave/pay-systems/general-schedule/

I never stayed at a grade long enough to realize some steps were more than a year.  It doesn't change the calculation for me, but thanks for pointing it out! [/quote]

:roll: [/quote]

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