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[quote=Anonymous][quote=Anonymous][quote=Anonymous]People, the reason you can't out a single value number on a pension is because you don't know how long you will live.

A big finance company can because they are averaging over thousands of pensions, whux reduces the unknown variability.

That doesn't work with the single largest value object in your own life.

Think about taking your life savings of $X million  and betting it all on a single pull of a slot machine.

Maybe you get $0, maybe you get $100 X million. Averaging those numbers is meaningless, because you don't get the average, you get one of the options. 
[/quote]

It's an expected value.  [/quote]
DP- Yes, it is an expected value if the pensioner live long enough to receive full value. If not, typically the surviving spouse is expected to receive a portion of the monthly pension, not the entire pension. It's typically between 30-50% depending on the pension. This is a fascinating topic because other than the federal government and some states, pensions are not available to civilian employees.

DC government only offers a DB pension to police officers, firefighters, and teachers. All other DC government employees receive up to a 5% 401K match. Florida state government still has  a pension, but it sucks and DCUM readers would not rely on it. Florida has two separate elections for retirement and they both suck. Employees can elect a contributory pension of 3% [b]without a cola [/b]upon retirement and it requires ten years of employment to vest. Alternatively, employees can elect the 401k equivalent with a 3% state match that vest after three years. So when I hear about these big pensions, I am frankly in awe that they still exist. [/quote]

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