Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

If it’s easier to soothe your ego, the pension is worth about $30k.

NP here. What do you mean the pension is worth about $30k? If I became a fed as a mid-50 something, do I get a pension? That sounds nice...

If your high three salary was $100K per year you'd get about $10K per year pension at age 62 assuming 10 years service. You'd pay 4.1% of your salary per year towards the pension.

Still not getting how this is worth $30k. It’s worth $10k/year for the rest of your life after retirement.

Figure out how much you have to save per year to have a nest egg that kicks out $10k/ year risk free forever.

This depends on assumptions, and a 4% real growth is reasonable both before and after retirement. So to get a $10K annual stream forever takes around $250K invested, and to save that over ten years takes about $20K in annual savings. But a pension isn’t quite like an investment as you can’t pass the capital on to your heirs, so realistically it’s worth less than the $20K you’re putting in. And you’re paying $4K of it yourself. Generously, a pension is more like a 15% addition to your salary not a 30% addition.

NP and what ticker symbols are you investing in for 4% real growth risk free? Let me know, I want to invest some in it.

Also the $20k would invested in after tax dollars, hence close to $30k.

With higher interest rates now it’s much easier to mimic — 10 year bonds are close to 4% now and risk free. But most pensions also have inflation adjustment annually which a 4% drawdown will not.

The lack of inheritance is a real drawback but depends on your risks etc.

If you invest the $20K in a retirement account it’s not after tax (unless Roth). And your pension is taxed when you draw it.

Federal pension has an inflation adjustment that’s slightly below actual inflation. I’m assuming 4% real appreciation (as FIRE folks often do).

The assumption is you are already investing the max in your retirement accounts — a pension is outside of that and doesn’t count against the limits.

This to replicate the value of the pension you need to do it with after tax dollars.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am a federal hiring manager in my late 40s, I prefer hiring people in their 50s to people in their 20s and regularly choose the older candidate when it's a close call. Best of luck.

So you discriminate based on age. Nice.

It's perfectly legal to discriminate against those who are under 40. Perfectly normal to prefer work and life experience. Nice.

Really?

Anonymous wrote:We just hired a 61 year old, and they're a fantastic, talented addition to the team. Go for it!

I'm in my 60s applying for a fed job, but I have had no luck, so I'm glad to hear you hired one of my peers. I'm looking in a new field, where my old experience doesn't count, so that's made it much more difficult. But I'm still applying. I had one interview where they clearly thought I was overqualified for the job, even though I was eager to take it.
BTW, when you're in your 60s, you are not looking to climb the career ladder, or even to do particularly interesting or challenging work. I want to do work that occupies my mind, uses some of my skills and keeps me busy and contributing to a worthwhile endeavor.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

If it’s easier to soothe your ego, the pension is worth about $30k.

NP here. What do you mean the pension is worth about $30k? If I became a fed as a mid-50 something, do I get a pension? That sounds nice...

If your high three salary was $100K per year you'd get about $10K per year pension at age 62 assuming 10 years service. You'd pay 4.1% of your salary per year towards the pension.

Still not getting how this is worth $30k. It’s worth $10k/year for the rest of your life after retirement.

Figure out how much you have to save per year to have a nest egg that kicks out $10k/ year risk free forever.

This depends on assumptions, and a 4% real growth is reasonable both before and after retirement. So to get a $10K annual stream forever takes around $250K invested, and to save that over ten years takes about $20K in annual savings. But a pension isn’t quite like an investment as you can’t pass the capital on to your heirs, so realistically it’s worth less than the $20K you’re putting in. And you’re paying $4K of it yourself. Generously, a pension is more like a 15% addition to your salary not a 30% addition.

NP and what ticker symbols are you investing in for 4% real growth risk free? Let me know, I want to invest some in it.

Also the $20k would invested in after tax dollars, hence close to $30k.

With higher interest rates now it’s much easier to mimic — 10 year bonds are close to 4% now and risk free. But most pensions also have inflation adjustment annually which a 4% drawdown will not.

The lack of inheritance is a real drawback but depends on your risks etc.

If you invest the $20K in a retirement account it’s not after tax (unless Roth). And your pension is taxed when you draw it.

Federal pension has an inflation adjustment that’s slightly below actual inflation. I’m assuming 4% real appreciation (as FIRE folks often do).

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

If it’s easier to soothe your ego, the pension is worth about $30k.

NP here. What do you mean the pension is worth about $30k? If I became a fed as a mid-50 something, do I get a pension? That sounds nice...

If your high three salary was $100K per year you'd get about $10K per year pension at age 62 assuming 10 years service. You'd pay 4.1% of your salary per year towards the pension.

Still not getting how this is worth $30k. It’s worth $10k/year for the rest of your life after retirement.

Figure out how much you have to save per year to have a nest egg that kicks out $10k/ year risk free forever.

This depends on assumptions, and a 4% real growth is reasonable both before and after retirement. So to get a $10K annual stream forever takes around $250K invested, and to save that over ten years takes about $20K in annual savings. But a pension isn’t quite like an investment as you can’t pass the capital on to your heirs, so realistically it’s worth less than the $20K you’re putting in. And you’re paying $4K of it yourself. Generously, a pension is more like a 15% addition to your salary not a 30% addition.

NP and what ticker symbols are you investing in for 4% real growth risk free? Let me know, I want to invest some in it.

True, the pension has zero risk, and 4% is typical real growth with risk over the short term but not over the long term.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

If it’s easier to soothe your ego, the pension is worth about $30k.

NP here. What do you mean the pension is worth about $30k? If I became a fed as a mid-50 something, do I get a pension? That sounds nice...

If your high three salary was $100K per year you'd get about $10K per year pension at age 62 assuming 10 years service. You'd pay 4.1% of your salary per year towards the pension.

Still not getting how this is worth $30k. It’s worth $10k/year for the rest of your life after retirement.

Figure out how much you have to save per year to have a nest egg that kicks out $10k/ year risk free forever.

This depends on assumptions, and a 4% real growth is reasonable both before and after retirement. So to get a $10K annual stream forever takes around $250K invested, and to save that over ten years takes about $20K in annual savings. But a pension isn’t quite like an investment as you can’t pass the capital on to your heirs, so realistically it’s worth less than the $20K you’re putting in. And you’re paying $4K of it yourself. Generously, a pension is more like a 15% addition to your salary not a 30% addition.

NP and what ticker symbols are you investing in for 4% real growth risk free? Let me know, I want to invest some in it.

Also the $20k would invested in after tax dollars, hence close to $30k.

With higher interest rates now it’s much easier to mimic — 10 year bonds are close to 4% now and risk free. But most pensions also have inflation adjustment annually which a 4% drawdown will not.

The lack of inheritance is a real drawback but depends on your risks etc.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

If it’s easier to soothe your ego, the pension is worth about $30k.

NP here. What do you mean the pension is worth about $30k? If I became a fed as a mid-50 something, do I get a pension? That sounds nice...

If your high three salary was $100K per year you'd get about $10K per year pension at age 62 assuming 10 years service. You'd pay 4.1% of your salary per year towards the pension.

Still not getting how this is worth $30k. It’s worth $10k/year for the rest of your life after retirement.

Figure out how much you have to save per year to have a nest egg that kicks out $10k/ year risk free forever.

This depends on assumptions, and a 4% real growth is reasonable both before and after retirement. So to get a $10K annual stream forever takes around $250K invested, and to save that over ten years takes about $20K in annual savings. But a pension isn’t quite like an investment as you can’t pass the capital on to your heirs, so realistically it’s worth less than the $20K you’re putting in. And you’re paying $4K of it yourself. Generously, a pension is more like a 15% addition to your salary not a 30% addition.

NP and what ticker symbols are you investing in for 4% real growth risk free? Let me know, I want to invest some in it.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

If it’s easier to soothe your ego, the pension is worth about $30k.

NP here. What do you mean the pension is worth about $30k? If I became a fed as a mid-50 something, do I get a pension? That sounds nice...

If your high three salary was $100K per year you'd get about $10K per year pension at age 62 assuming 10 years service. You'd pay 4.1% of your salary per year towards the pension.

Still not getting how this is worth $30k. It’s worth $10k/year for the rest of your life after retirement.

Figure out how much you have to save per year to have a nest egg that kicks out $10k/ year risk free forever.

This depends on assumptions, and a 4% real growth is reasonable both before and after retirement. So to get a $10K annual stream forever takes around $250K invested, and to save that over ten years takes about $20K in annual savings. But a pension isn’t quite like an investment as you can’t pass the capital on to your heirs, so realistically it’s worth less than the $20K you’re putting in. And you’re paying $4K of it yourself. Generously, a pension is more like a 15% addition to your salary not a 30% addition.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

If it’s easier to soothe your ego, the pension is worth about $30k.

NP here. What do you mean the pension is worth about $30k? If I became a fed as a mid-50 something, do I get a pension? That sounds nice...

If your high three salary was $100K per year you'd get about $10K per year pension at age 62 assuming 10 years service. You'd pay 4.1% of your salary per year towards the pension.

Still not getting how this is worth $30k. It’s worth $10k/year for the rest of your life after retirement.

Figure out how much you have to save per year to have a nest egg that kicks out $10k/ year risk free forever.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

If it’s easier to soothe your ego, the pension is worth about $30k.

NP here. What do you mean the pension is worth about $30k? If I became a fed as a mid-50 something, do I get a pension? That sounds nice...

If your high three salary was $100K per year you'd get about $10K per year pension at age 62 assuming 10 years service. You'd pay 4.1% of your salary per year towards the pension.

Still not getting how this is worth $30k. It’s worth $10k/year for the rest of your life after retirement.

Anonymous wrote:

Anonymous wrote:

If it’s easier to soothe your ego, the pension is worth about $30k.

NP here. What do you mean the pension is worth about $30k? If I became a fed as a mid-50 something, do I get a pension? That sounds nice...

If your high three salary was $100K per year you'd get about $10K per year pension at age 62 assuming 10 years service. You'd pay 4.1% of your salary per year towards the pension.

Anonymous wrote:

If it’s easier to soothe your ego, the pension is worth about $30k.

NP here. What do you mean the pension is worth about $30k? If I became a fed as a mid-50 something, do I get a pension? That sounds nice...