Reply to Top 1% of Retirees Have 16.7M

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]How do you calculate a pension for total retirement assets?[/quote]

There are several ways and it depends on the type of pension. This is a good, if dense, explanation: https://andrewmarshallfinancial.com/what-is-a-pension-worth/

It gets easier to value a pension as you get closer to age of retirement to earn the full pension. I am 5 years out now, so I have a good idea of what my initial pension payment will be (mine is 60% of the average of the top three years of earnings, so I can extrapolate fairly easily based on current salary). My pension is inflation adjusted as well, so I follow the calculations at the link for inflation adjusted pensions.[/quote]

Thank you for posting this site. I have always wondered about this, and the table make the calculation easy.[/quote]

It is an easy to use table but they don’t have a way to address the value of a pension for a couple if only one person has the pension and the survivor gets a fraction, say half.   [/quote]

You could estimate longevity for the main pension holder and then add the calculation for half of the pension for the survivor starting with their age upon the estimated death of the main pension holder.

So, for example, if the main pension holder is a 45 year old male, 15 years from retirement, you would take the pension amount times the appropriate multiplier. If you assume that he will die at 80 and the surviving female spouse is five years younger, you would take half the pension amount and multiply that by the multiplier for a female age 75 with zero years before taking the benefit. Then you add the two amounts together. [/quote]

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