Anonymous
12/03/2023 21:01
Subject: How do you value a pension in your net worth?
Anonymous wrote:Anonymous wrote:I am a federal employee, I joined the government in my early 20s and can retire at my minimum retirement age of 57 with over 30 years of service. I’m calculating at age 57 I’d have 33
years and my high 3 average salary would be around $200k so I could have around $66k in pension annual income for the rest of my life, more if I stay longer.
My DH didn’t join the government until his 40s so at 57 he’ll be closer to half that or $30k annually for life.
We do have over $1m in the TSP with several years to go and will both get the maximum SS, but when I see all of these posters with a lot more retirement savings I wonder if we’re behind or doing ok due to the pensions.
We are in a similar position and we have calculated that we will be able to have a comfortable retirement between pension and social security. We don’t plan to touch TSP unless absolutely necessary. Our idea of retirement doesn’t include extravagant tastes though.
We plan to do the same. Only about 130k/yr but it’s enough for us. No need to take money out of TSP/401k.
Anonymous
12/03/2023 20:43
Subject: How do you value a pension in your net worth?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:I don't think you will get Social Security plus a government pension.
You do, plus you get to keep your cheap health insurance for you and your spouse.
How do you value the healthy insurance benefit?
I don't put a number on it. It's heavily subsidized. We're planning to stay on the bcbs basic, so it will be around $500/month for both of us.
Anonymous
12/03/2023 19:39
Subject: How do you value a pension in your net worth?
Anonymous wrote:I am a federal employee, I joined the government in my early 20s and can retire at my minimum retirement age of 57 with over 30 years of service. I’m calculating at age 57 I’d have 33
years and my high 3 average salary would be around $200k so I could have around $66k in pension annual income for the rest of my life, more if I stay longer.
My DH didn’t join the government until his 40s so at 57 he’ll be closer to half that or $30k annually for life.
We do have over $1m in the TSP with several years to go and will both get the maximum SS, but when I see all of these posters with a lot more retirement savings I wonder if we’re behind or doing ok due to the pensions.
We are in a similar position and we have calculated that we will be able to have a comfortable retirement between pension and social security. We don’t plan to touch TSP unless absolutely necessary. Our idea of retirement doesn’t include extravagant tastes though.
Anonymous
12/03/2023 19:29
Subject: How do you value a pension in your net worth?
Anonymous wrote:Anonymous wrote:Anonymous wrote:I don't think you will get Social Security plus a government pension.
That is correct for the old plan. There is a SS offset. I think you get some of it though.
With FERS and anyone who joined the government after 1984 has FERS, you get full SS plus pension. As an employee you are paying just as much in to SS as you would as a private sector employee
My DH started in late 1983 and stayed on CSRS. But then switched to the private sector so has been paying into SS at the max level for the last 15 years. He has enough years to get the pension and SS but some portion of the SS will be an offset. Not totally clear how much, or if it makes sense to take SS early or defer to 70.
Anonymous
12/03/2023 17:29
Subject: How do you value a pension in your net worth?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:I don't think you will get Social Security plus a government pension.
That is correct for the old plan. There is a SS offset. I think you get some of it though.
OP is in the new system (FERS), not CSRS
I agree. Also I don't know anyone who is still working under the old plan. FERS has been around for 36 years now.
CSRS Offset. There are many still around. They started under CSRS, left the government and returned years later. These people were given the option of staying in CSRS, will receive some social security from outside federal service. However, their social security will be offset by a reduction.
Anonymous
12/03/2023 16:53
Subject: How do you value a pension in your net worth?
Anonymous wrote:I don't think you will get Social Security plus a government pension.
FERS employees do.
Anonymous
12/03/2023 15:48
Subject: Re:How do you value a pension in your net worth?
Anonymous wrote:I don’t consider my pension or SS as part of my net worth. It’s simply my base income. I consider my net worth to be all of my other assets principally those income producing assets that generate the income I need above and beyond pensions and SS. Yes, my mortgage free homes are valuable assets but they generate expenses not income. A CPA would argue with me on this but I like to keep things simple.
Same. Personally, I have a very small pension (company puts in 2 percent of my income each year) and I don’t consider it at all in any of my financial planning. It’s separate from my 401k match, and even if I stay at this company until I retire, it’ll probably be worth only around $150-$200k, which isn’t exactly going to throw off a lot of income each year.
Anonymous
12/03/2023 12:26
Subject: How do you value a pension in your net worth?
I’ve had several family members live to be 100 and my parents are very healthy and active in their 80s so I value my pension higher because I worry about outliving my savings
Anonymous
12/03/2023 12:21
Subject: How do you value a pension in your net worth?
Anonymous wrote:Anonymous wrote:Anonymous wrote:I don't think you will get Social Security plus a government pension.
You do, plus you get to keep your cheap health insurance for you and your spouse.
How do you value the healthy insurance benefit?
Anonymous
12/03/2023 12:10
Subject: How do you value a pension in your net worth?
Anonymous wrote:Anonymous wrote:Anonymous wrote:I don't think you will get Social Security plus a government pension.
That is correct for the old plan. There is a SS offset. I think you get some of it though.
OP is in the new system (FERS), not CSRS
I agree. Also I don't know anyone who is still working under the old plan. FERS has been around for 36 years now.
Anonymous
12/03/2023 11:58
Subject: How do you value a pension in your net worth?
Anonymous wrote:Anonymous wrote:I don't think you will get Social Security plus a government pension.
That is correct for the old plan. There is a SS offset. I think you get some of it though.
OP is in the new system (FERS), not CSRS
Anonymous
12/03/2023 11:56
Subject: How do you value a pension in your net worth?
Anonymous wrote:Anonymous wrote:Anonymous wrote:I don't think you will get Social Security plus a government pension.
You do, plus you get to keep your cheap health insurance for you and your spouse.
FERS yes
CERS no SS
CSRS, "scissors"
Anonymous
12/03/2023 11:54
Subject: How do you value a pension in your net worth?
Anonymous wrote:Anonymous wrote:I don't think you will get Social Security plus a government pension.
You do, plus you get to keep your cheap health insurance for you and your spouse.
FERS yes
CERS no SS
Anonymous
12/03/2023 11:52
Subject: How do you value a pension in your net worth?
Million.
Anonymous
12/03/2023 11:44
Subject: How do you value a pension in your net worth?
Anonymous wrote:I don't think you will get Social Security plus a government pension.
You do, plus you get to keep your cheap health insurance for you and your spouse.