Reply to Valuation of Pension for Retirement Planning

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Folks want to include the pensions in their net worth because it makes them feel richer and more able to keep up with the Joneses. It’s kind of pathetic.[/quote]

Is it because you might be jealous of my inflation adjusted $140k annual pension with lifetime benefits?. I retired fours years ago at age 53.  Do I count as part of NW? No I dont but my financial planner recently advised its “worth” about $3.5m ($140x25).  Loser [/quote]

When you croak your heirs get nothing so it’s not an asset.  [/quote]

But for each year they live and don’t take funds from their retirement accounts and invest those funds more aggressively because they don’t need them, their heirs win.

If the pension holder lives 25 years, those foregone withdrawals and higher investment rates will be worth way, way more than $3.5 million to their heirs.

For example, assuming a full investment in stock, just the first year of forgone withdrawal will be worth $1.516 million ($140k* 1.1^25) in 25 years. [/quote]

LOL, ok.  So now we're suggesting that typical pensioners are leaving millions and millions of dollars to their heirs?  That's a good one.[/quote]

Not sure who put the chip on your shoulder but you seem to have this idea of “pensioners” being exclusively lower class workers living hand to mouth off of their pension alone.

Im the pp who mentioned that my spouse and I will each be retiring with a ~100k pension each. We’ll also have roughly 4 million combined in 401ks /brokerage accounts and a paid off home and rental property.

Baring some catastrophe we expect to leave an inheritance in the millions to our children. We have many colleagues in similar circumstances.
[/quote]

You're gonna have to make some pretty hefty RMDs from those 401k, my friend,

Look, pensions are nice.  They really are.  [b]But you don't hear me slobbering over my social security checks.  It's basically the same thing.[/b]  The appeal of a pension is that it makes up some for toiling away in a relatively low paying job for many years.  People who make big money aren't offered and don't been pensions.  [/quote]

Except that the pension is more than 3x as much as a social security paycheck, I can start collecting in my early 50s and it comes with health insurance.  But yeah otherwise exactly the same.[/quote]

But how many years will you have had to work at your job to collect that pension and at what salary?  And what happens should you decide you don't want to work at your low paying job long enough to qualify for the pension?

Nothing is free, my friend.  [/quote]

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