If you have a pension, how do you view it?

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JBEB
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If you have a pension, how do you view it?

Post by JBEB »

If you are one of the lucky ones with a pension, how do you view it in terms of retirement planning? Do you pretend like it isnt there? Do you factor it in your % you invest? Do you still invest in other IRA's?

In a world where anything is possible, I always wondered how people with pensions plan for retirement.

(Or if there is already a thread and I am an idiot, post that too)

Thanks
Grt2bOutdoors
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Re: If you have a pension, how do you view it?

Post by Grt2bOutdoors »

You can have the finest one leg stool in the store (Pension) or a robust 3-4 leg stool (Pension, IRA, Social Security, maybe some bonds or savings or rentals too). Which stool do you prefer? What happens if a single leg breaks?
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backpacker61
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Re: If you have a pension, how do you view it?

Post by backpacker61 »

I'll receive a small pension, from a private company I worked for some years ago. Like at many companies, the pension benefit was "frozen" some time in the early 2000's. I don't figure it into my "net worth" at all, though it's NPV would be at least a couple hundred K$.

I treat it as "longevity insurance", and plan to file for it at age 72 (which you can do now owing to the SECURE act). Previously, you had to file for pensions by age 70 (like taking RMD's from an IRA or 401K),

I contribute to my new employer's 401K and also a Trad IRA; the pension by itself (even combined with SS) would not be enough for a secure retirement.

I do invest more aggressively because of the existence of the pension (+SS).
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Swansea
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Re: If you have a pension, how do you view it?

Post by Swansea »

My pension covers all my living expenses and then some. I use the excess to fund my Donor Advised Fund. It also makes my 60/40 stock/bond a comfortable mix for me even in my 70s.
Housedoc
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Re: If you have a pension, how do you view it?

Post by Housedoc »

I treat my pension as fixed income. Constant source till I pass then wife gets 50pct. If she goes 1st, I get half of hers. Private company plan funded at 104pct currently. I am out higher on risk curve due to this. Sleep well at night.
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TomatoTomahto
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Re: If you have a pension, how do you view it?

Post by TomatoTomahto »

Since it isn’t COLA, I don’t view it as much. It’s nice yet small now, and before I die, it will be tiny.
I get the FI part but not the RE part of FIRE.
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oldcomputerguy
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Re: If you have a pension, how do you view it?

Post by oldcomputerguy »

I have a small pension from a previous employer, with whom I parted ways in 1994, and which I just started drawing in August. I don't consider it a portion of my AA, it's just an income stream like any other. It's not much, just about enough each month after taxes to cover my Medicare / Medigap premiums and my annual Part B deductible.
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rkhusky
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Re: If you have a pension, how do you view it?

Post by rkhusky »

I view it favorably. I subtract it from my living expenses in order to figure out how much my investments must provide. I have life insurance that will last for a few more years because the survivor benefit is only 50% - after that, investments and SS should cover the rest.
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jakehefty17
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Re: If you have a pension, how do you view it?

Post by jakehefty17 »

I have a pension through the union I'm part of. Company matches 5-9% (raises 1% every 5 years of service) of salary into a cash-balance pension with an annual interest rate prescribed by the Internal Revenue Service under Internal Revenue Code Section 417(e)(3)(C) as of September of the preceding year. For 2020, the interest rate is 2.16% APY. I'm sure it'll be lower next year. No COLA.

I view the pension as a bonus, since I can't invest or control the pension in any way. My focus is on my personal savings rate and boosting my 401k, Roth IRA, HSA and Taxable accounts.
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BV3273
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Re: If you have a pension, how do you view it?

Post by BV3273 »

I don’t have a pension, but I’m enjoying reading how those who do one one view it. Much different then what I thought I would read.
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TomatoTomahto
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Re: If you have a pension, how do you view it?

Post by TomatoTomahto »

BV3273 wrote: Fri Oct 02, 2020 6:33 am I don’t have a pension, but I’m enjoying reading how those who do one one view it. Much different then what I thought I would read.
Some of us, and I would guess the majority, have pensions that were no longer contributed to by employers years ago (when the transition to 401k plans took place). The “substantial portion of salary” type plans were mostly I think for government jobs.

ETA: I get somewhere around $20k/year, which is better than a stick in the eye, but . . .
I get the FI part but not the RE part of FIRE.
BlueCable
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Re: If you have a pension, how do you view it?

Post by BlueCable »

I have a cash balance pension plan, so I get a statement each year telling me the balance. My company adds 4% of my salary to it each year. It also earns an interest rate each year equal to the current year's 30-year Treasurer Bond issue.

Due to these characteristics, I count it as part of my bond allocation, which consists of this pension plan, EE Bonds, I-Bonds, and the remainder an intermediate bond fund.
andypanda
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Re: If you have a pension, how do you view it?

Post by andypanda »

I have a government pension based based on 38 years of work. I retired at 62. I could have made a considerably higher salary, or taken a job that paid healthy commissions, working somewhere else after grad school, but those jobs didn't have pensions. I view my pension as deferred comp for all of those decades of relatively low wages. :) I did enjoy the work.

I took my full SSA retirement at 66 and will begin RMDs from deferred comp plans in a couple of years. They will be enough for a couple of really nice car payments... if I did car payments. I've saved and paid cash for new cars since 1986.

Then there's my taxable account. I began buying a little stock off and on from time to time in the 1960s and now I've ended up with a taxable account that puts my deferred comp plans to shame. It's a good problem to have. I (we, I remarried in 2018) will get hammered when the RMDs begin because the taxable account has grown and multiplied and I have had more money to invest in recent years and have never taken any out. And then there's the IRMAA bill for Medicare.

I know, poor planning. But I never figured I'd work that long or end up rich. My parents were born in time to grow up during the depression so I was raised on a steady diet of thrifty. And no debt except for a small mortgage maybe.
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augryphon
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Re: If you have a pension, how do you view it?

Post by augryphon »

For years I Pretended it wasn’t there, because so many pensions have been eliminated and I assumed mine would be too. Now I am at an age that I could retire before they could eliminate it, it has become real. In my retirement equation, I simply subtract the pension amount for my monthly expenses, then use my investments to account for my remaining needs.

As my former FA told me when we compared the cash option to the pension, “there is a goose laying golden eggs in your lap, don’t mess it up.”
Old Guy
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Re: If you have a pension, how do you view it?

Post by Old Guy »

My wife and I have very comfortable pensions from a total of 57 years of federal service at a combined GS 29-18 level and then 17 years at the state level. We also took advantage of other saving and investing programs offered by the federal and state governments. No FIRE for us. How do we consider it? With great enthusiasm. We spend it, bought the largest house we ever owned, give some to our son, donate part, travel, save. It’s our reward for the difficulty in trying to do civil rights enforcement and expanding mental health services over all those years.
Last edited by Old Guy on Fri Oct 02, 2020 7:20 am, edited 1 time in total.
carolinaman
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Re: If you have a pension, how do you view it?

Post by carolinaman »

I view it as income along with SS. Fortunately, both income sources meet our needs except for major non recurring expenses like major home repairs, cars, etc. We have also used some savings for gifts to our children and grandchildren. We helped pay for our oldest granddaughter's college expenses and a truck for our son's business. I view our savings as mostly for inheritance by our children.

If our income needs were not fully met by our pensions and SS, our investment would cover our remaining expense needs.
runner3081
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Re: If you have a pension, how do you view it?

Post by runner3081 »

Pretend like it isn't there, but still run the estimate tool and dream :)
ubermax
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Re: If you have a pension, how do you view it?

Post by ubermax »

I took my Cash Balance defined benefit plan as a lump sum at retirement and rolled it into my Traditional IRA - if it had been a Traditional defined benefit plan I would have viewed it like Social Security - I also had a K plan with my former employer that I also rolled to my TIRA - our retirement budget is fed by Social Security and draws from our IRAs .
Last edited by ubermax on Fri Oct 02, 2020 7:45 am, edited 2 times in total.
Dontwasteit
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Re: If you have a pension, how do you view it?

Post by Dontwasteit »

My wife and I both have pensions. Hers less than mine. Since I wasn't able to get life insurance due to medical reasons I opted for the plan that instead of me getting my $40,000 per year pension I receive $33,000 but my wife collects it after I die. I've been retired 9 years so far which comes out to $63,000 less but at least I have peace of mind that when I die wifey will collect it for as long as she lives. It is a great feeling to sit back and get a pension check every month!
retiredjg
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Re: If you have a pension, how do you view it?

Post by retiredjg »

I view it as an income stream. I view SS the same way.
IowaFarmBoy
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Re: If you have a pension, how do you view it?

Post by IowaFarmBoy »

I'm recently retired and have a reasonable pension from a mega corp that is well funded so it is reasonably secure but it is not indexed to inflation. Our planning indicates that we should be able to maintain our current lifestyle with just the pension and SS (when it starts). We have also saved quite a bit in retirement accounts. Our pension, SS and retirement accounts should each generate roughly the same amount of income so we have built the "three-legged stool" but should only need two of the legs unless something goes awry. My thinking is that savings will be used to bridge until SS and also it will be used as a cushion against inflation (non-indexed pension), splurges and as a cushion against unforeseen issues like large medical expenses, failure of pension, etc.

Generally in my planning, I have viewed it as an income stream reducing the need for income from other sources but have still built up significant savings as a hedge against uncertainty. I'm amazed by the number of people I knew at work that felt like they would retire as soon as their projected income from all sources would meet their expenses and didn't see the need for a cushion.
SimplicityNow
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Re: If you have a pension, how do you view it?

Post by SimplicityNow »

I have a secure government pension. I view it as an income stream. As Grt2bOutdoors said, it is always better to have various sources to provide income in retirement.

My pension as well as our investments and eventually social security give us confidence.
dbr
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Re: If you have a pension, how do you view it?

Post by dbr »

I go online at my companies retirement benefits web page and navigate to the pension link to view what it shows for the monthly payment.

So, seriously, the pension is income that is deposited in my checking account every month. Regarding financial planning it is an income stream that is fixed in nominal dollars and can be entered in a retirement spending model like FireCalc as such to forecast how things might go in the future. The other item that goes in that same list is Social Security. Since the pension is fixed there is a planning consequence that as inflation reduces the buying power income will have to come from other sources to make up the difference. Also, as a survivor my wife would get half my amount*, so she needs to be aware of the consequences should I predecease her by a lot. We have some life insurance to compensate for that.

*The company I worked for adopted the interesting policy of granting the same payout to single life and to life with 50% survivor. The payout for 100% survivor is much less. This was an interesting "family friendly" approach. Of course, this company has not offered a pension benefit to new employees for a couple of decades now.
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Artful Dodger
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Re: If you have a pension, how do you view it?

Post by Artful Dodger »

My wife has a pension from when she worked in state government. It’s small, but for now has a COLA. Really it’s like a mini Social Security benefit. I just plug it into my Fidelity retirement planner software, where it is counted as an income stream.
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CyclingDuo
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Re: If you have a pension, how do you view it?

Post by CyclingDuo »

JBEB wrote: Fri Oct 02, 2020 4:58 am If you are one of the lucky ones with a pension, how do you view it in terms of retirement planning? Do you pretend like it isnt there? Do you factor it in your % you invest? Do you still invest in other IRA's?

In a world where anything is possible, I always wondered how people with pensions plan for retirement.

(Or if there is already a thread and I am an idiot, post that too)
There have been lots of threads about pensions, but you are not an "i". :beer

DW will have a state pension and we consider it one of the legs or our retirement income stream...

Image

In terms of viewing it for retirement planning, we control what we can to strengthen each leg of the traditional stool: work long enough to maximize the pension, work long enough to both maximize our SS, contribute to our personal savings/risk portfolio as much as we can.

Do we pretend the pension is not there? No. The employee mandatory contribution has always been in the 6-7% range for my DW, so in the early days we focused on her contributions and the vesting period in case we moved to a different state, she would at least be able to get the lump sum amount of her contributions up to that point. Then, as the years rolled by we transitioned to focusing on the calculation rules of age and service years to qualify for the full benefit. DW also has the option to purchase up to 5 additional years of service at retirement. I'm one who likes to look at daily numbers, weekly, monthly, and annual regarding income and expenses. So we know how much the pension will contribute to our numbers once taken at retirement.

Do we factor it in regarding % that we invest? Well, we know that 6.x% of every gross paycheck that my wife has is removed as a mandatory contribution to the pension fund. One could count that as part of their 15%-20% of retirement contributions, or one could not count it. Either way is good, but in our case DW saves much more than that in her 403b/457b plans on a percentage basis. Probably another question would be - does it impact one's asset allocation for the risk portfolio? In our case, yes. It somewhat tempers how much we have in the bond tent compared to if we did not have the pension.

Do you still invest in other IRA's? Yes. We max out our Roth IRA's now that we are in the empty nest years, fill as much of our 401k/403b/457b space as salary will allow with the catch up over age 50 rules, and invest in taxable account as well.

CyclingDuo
Last edited by CyclingDuo on Fri Oct 02, 2020 8:51 am, edited 1 time in total.
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TonyDAntonio
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Re: If you have a pension, how do you view it?

Post by TonyDAntonio »

I don't factor my small pension into my allocations at all. I use it to pay for my retiree supplemented healthcare and income tax management. I have so much withheld from it each month that what shows up in my checking account is a rounding error. I'm not complaining because it does pay some of my bills. I realize that just because I don't see much net that it is a part of my portfolio. I just don't view it as such for making portfolio decisions. It is not a cola-ed pension.
RJC
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Re: If you have a pension, how do you view it?

Post by RJC »

It allows us to be more aggressive during the accumulation phase (100% equities).
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Re: If you have a pension, how do you view it?

Post by BarbBrooklyn »

retiredjg wrote: Fri Oct 02, 2020 7:59 am I view it as an income stream. I view SS the same way.
This. My DH will get 100% if I die first. If he dies first, I get a "bounce".

Having a pension has not affected my AA. I am in early retirement and at a very conservative 35/65 to avoid sequence of return risk. Will consider going to 50/50 or even 60/40 at 70/72 when full SS/RMDs kick in.
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dbr
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Re: If you have a pension, how do you view it?

Post by dbr »

Regarding asset allocation, a pension is not an investment asset. The presence of a pension should affect a person's need, ability, and willingness to take risk in investing. At the first cut having a pension would reduce the need to take risk and increase the ability and willingness to take risk. Those are opposite effects on risk so the outcome is ambiguous. At second cut the presence of a pension might cause an investor to rethink those parameters with an outcome in any possible direction. This is why the process is more subtle than simply entering the NPV of a pension as a fixed income asset. A variation on this would be the question of how to allocate the remaining assets if one used a portion of the assets to buy an SPIA.
redmaw
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Re: If you have a pension, how do you view it?

Post by redmaw »

My wife has a fed pension, but since she's stay at home mom now its small (~$500/month) and not growing, but will get inflation adjustments once she hits 62 I think (many years from now). I have a larger, but not inflation adjusted private pension. It was closed to new hires several year ago, and rumors have been circulating since that it will be frozen, if that happens, without an inflation adjustment it won't be worth much by the time I can collect it either. I do a conservative NPV calculation and add it into my networth spreadsheet, since they are both vested and guaranteed benefits... buts its maybe 4% of the total, so it doesn't make much difference. When I try to run projections on where I will be in retirement I run the estimated values as income, just like I do SS.

In the end it doesn't change much, I definitely still invest in 401k, and IRAs. If anything it pushes a bit more towards roth, as the pension income alone should push me through the 10% bracket.
donaldfair71
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Re: If you have a pension, how do you view it?

Post by donaldfair71 »

My wife and I both have pensions, though we won't retire and begin payments for another 20 years.

Until we claim, we treat the cash value that we could presently withdraw at severance as an asset. Outside of that, the pension doesn't enter planning in any way.
kaudrey
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Re: If you have a pension, how do you view it?

Post by kaudrey »

As many others, I view our pension as future income streams. The estimated amounts are deducted from our projected expenses so we know what portion of those needs to be covered by investments. Also, for many years, we invested more aggressively because we knew the pensions would be there. As we get close to retirement (actually, DH is already retired and will start collecting his pension next year), our AA is more conservative just because we don't need to be otherwise.
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WoodSpinner
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Re: If you have a pension, how do you view it?

Post by WoodSpinner »

JBEB wrote: Fri Oct 02, 2020 4:58 am If you are one of the lucky ones with a pension, how do you view it in terms of retirement planning? Do you pretend like it isnt there? Do you factor it in your % you invest? Do you still invest in other IRA's?

In a world where anything is possible, I always wondered how people with pensions plan for retirement.

(Or if there is already a thread and I am an idiot, post that too)

Thanks
I was one of the lucky ones.

During accumulation, I counted the current Lump Sum value of the pension as part of my Fixed Income and invested to match my target AA.

When I retired and decided to take the pension (This was a good financial and behavioral decision), I stopped counting this as part of Fixed Income and rebalanced.

WoodSpinner
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gr7070
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Re: If you have a pension, how do you view it?

Post by gr7070 »

I wouldn't consider myself a "lucky one". I pay into my pension with 10% of my income and eroding "defined" benefits. I could also make 50% more income in the private sector. I've made these choices; one of the results of those choices is a pension (with some healthcare).

Most pensions I know of, especially for new hires (like me) are nothing to be envious of.

We absolutely invest in other retirement vehicles. Heavily. And also own investment property. And pay extra on mortgage. Like most Boglehead's I'm at least somewhat frugal and an inherent saver.

Additionally and wisely, both pension employers (wife and I) push the three-legged stool planning; pension, SS, and IRAs. One either needs a high income and three plus decades pension contributions for pension and SS too be enough to retire on. Thus IRAs are necessary.

I'm late 40s, and my pensioned-job is newer to me. So it will be a modest pension and starts later in life. Additionally, it's not a significant portion of my assets. Thus i don't give it great consideration in my planning. It will certainly help, though.

My wife has always had a pensioned-job with a lower income (teacher). I've largely ignored her own employee contributions and that benefit for the sake of our planning for the previous 25 years.

However, as we approach retirement in about 5+ years I am definitely factoring in her pension-income, paid for healthcare, and my ability to buy insurance in her plan if needed in our retired budget. While it's a modest pension it's guaranteed, starts somewhat early, and again comes with cheap healthcare. So it's not insignificant.

I've always ignored the percent contributed when considering percent contribution rules of thumb/goals, etc. However, if asked what my savings rate is I would certainly include it; since it absolutely is part of it, and definitely not minimal.

Were I young, or we both had lower-income pensioned-jobs all our lives I would definitely consider the contribution in my percentages and planning etc. However, that wasn't our situation early on, and now that it is much later in life it's not as significant a factor anymore.
Last edited by gr7070 on Fri Oct 02, 2020 9:45 am, edited 1 time in total.
Stoic9
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Re: If you have a pension, how do you view it?

Post by Stoic9 »

We used the legs of a stool (modified) plan. 1 leg Passive Income: pensions, rents, one day SS 2 leg Portfolio: 84/16 AA 65% is subject to RMD in 10 years and 22-24% tax in todays world, 25% is Roth, 10% is taxable LTGC, 3 leg Real Estate: rental property has very much appreciated but no need to sell. 4 leg Debt: zero

We have 3 pensions with COLA and we view them as passive income streams along with our rents (been VERY stable with increases for past 25 years and expect that to stay). SS will come in 8 years. Pensions and rents are more than we can spend. No need for a emergency fund pensions have survivor benefits so if one of us dies no effect on passive income.
jcar
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Re: If you have a pension, how do you view it?

Post by jcar »

I receive a monthly pension and no doubt it is helpful and reasonably reliable long term. It covers roughly 30% of our monthly budget. I guess it does free up the IRA and savings for investment for legacy purposes. Obviously I'm happy to have have it.
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midareff
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Re: If you have a pension, how do you view it?

Post by midareff »

I view it (my pension) as an income stream, same as I view Social Security. My (taxable) portfolio also provides an income stream as does my IRA due to RMD requirements. Those four income streams funnel to our bank and provide (net of taxes) our spendable income.

It provides about 37% of our total income and could cover near 80% of non-discretionary spending. Top 10 well funded state pension fund last I looked.
Last edited by midareff on Fri Oct 02, 2020 9:31 am, edited 2 times in total.
friar1610
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Re: If you have a pension, how do you view it?

Post by friar1610 »

My military pension for 28+ years of active Navy service is the core of our early (at 58) retirement. Other income streams (SS, RMDs, tiny fixed pension for spouse) are supplementary to the Navy pension but are only tapped on occasion or used, in the case of RMDs, for QCDs. One more income stream (a deferred annuity) is yet to be turned on and is being held in reserve while it grows for my wife if I go first. (Military pension will drop to 33% of current level as a survivor benefit). Portfolio, while modest compared to many I read about on BH, will provide funds for extraordinary expenses, old-age health care, major crises, etc. We've taken a relatively conservative approach (50-50-ish) with the port. If the pension were to disappear, we'd get by but wouldn't live as well as we do now. Children/grandkids will get a decent inheritance if we don't use the port.
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Ron
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Re: If you have a pension, how do you view it?

Post by Ron »

retiredjg wrote: Fri Oct 02, 2020 7:59 amI view it as an income stream. I view SS the same way.
I/we do the same for my wife's two (small) pensions, along with the monthly income from our SPIA, VA disability, and retirement health reimbursement arrangement (HRA) benefits.

- Ron
dbr
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Re: If you have a pension, how do you view it?

Post by dbr »

jcar wrote: Fri Oct 02, 2020 9:21 am I receive a monthly pension and no doubt it is helpful and reasonably reliable long term. It covers roughly 30% of our monthly budget. I guess it does free up the IRA and savings for investment for legacy purposes. Obviously I'm happy to have have it.
So that would be an example of the presence of a pension affecting your need to take risk due to an adjustment to your ability to take risk. It enables the objective of investing more aggressively for long term growth of wealth. That, of course, assumes that is what you mean by legacy purposes. There are people that put money intended to be passed to someone else all in T bills so the amount to be passed is known fairly exactly. But the point is that it is all about objectives. The process is also kind of obvious in spite of the gobble-de-gook description of need and ability.
fishnhunt
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Re: If you have a pension, how do you view it?

Post by fishnhunt »

I will have a pension someday worth about 50% of my final pay from my high 3 years if I stay with my current employer. This is one of the best pension plans in the country/ world, so I feel confident it will be there when I retire. This will cover all of my standard living expenses with some extra every month. I still invest in my Roth IRA and deferred comp 457b plan (both pre and post tax) and contribute to Social Security. I also have a rollover IRA from my previous employer which continues to grow nicely. I should have a comfortable retirement and probably invest more than I have to, but you never know. I would rather have a little extra than not enough. It will be easier to pull back my contributions in the future than trying to play the catchup game.
dbr
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Re: If you have a pension, how do you view it?

Post by dbr »

I don't count RMDs as spending. My RMDs just transfer money from tax deferred accounts to taxable accounts. The spending I then withdraw is not set equal in amount to any particular RMD. Some years at RMD time money is spent fairly soon (We did that to buy a car one year.) and other years it is reinvested in some taxable account asset. An effect of having a pension is that in some years the money moved in RMDs does not have to be spent.
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marti038
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Re: If you have a pension, how do you view it?

Post by marti038 »

Personally, I don't account for it in our retirement planning. I suppose I'm pessimistic about the likelihood of it still being around in 20 years or so. Same for SS.

I do track the pension's present value by basically comparing it to what an annuity would cost with a similar monthly benefit.

We still invest at least 15% of our annual gross income in IRA's and 401k's, some years more.
Yooper
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Re: If you have a pension, how do you view it?

Post by Yooper »

While working, I never really counted on it in the sense that I figured it wasn't really "mine" until I actually retired. So while I maxed out my contributions to it (government pension), I also maxed out my IRA, and maxed out my regular savings (essentially everything except living expenses). In hindsight I could have probably dialed back my regular savings and still been alright, but now that I'm retired I certainly don't regret the aggressive savings I did. Everything worked out alright - so far.
DeadLoad
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Re: If you have a pension, how do you view it?

Post by DeadLoad »

My pension will cover 100% of my monthly expenses by retirement (90-100% of highest paid year, lifetime medical for myself and my wife, and COLA). Assuming all goes well, everything else I save is extra. I will not receive SS but my wife will and we currently save ~$20,000 in retirement accounts with the goal of maxing out 2 (401k/457b). This is our plan B just in case I am not able to work my full career (injury/disability/etc) and need to supplement the pension. My mandatory pension contributions are currently 12% and will probably increase by the time I retire. I also invest more aggressively (90/10) than I would if I did not have a pension.
Last edited by DeadLoad on Fri Oct 02, 2020 10:28 am, edited 1 time in total.
nobody123
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Re: If you have a pension, how do you view it?

Post by nobody123 »

I was lucky enough to be grandfathered into our pension so that it continues to grow when it was eliminated / frozen for new / younger employees a few years ago. Since it is completely employer-paid, I have no control over it, and I'm still 15+ years away from retiring, it doesn't factor into my asset allocation or amount I save for retirement. I view it like I do social security, some theoretical cash flow that I might one day receive, but I am by no means assuming it will be there. It is not COLA'd, so if anything I will look at it as "fun money" for the earlier years of my retirement when I can still enjoy travel, etc. and in later years it will help me keep more assets invested to pass on to my kids.
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C4NT
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Re: If you have a pension, how do you view it?

Post by C4NT »

RJC wrote: Fri Oct 02, 2020 8:50 am It allows us to be more aggressive during the accumulation phase (100% equities).
This is about the only way my pension causes me to change my thinking. Although I only go to 90% equities.
Chuck107
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Re: If you have a pension, how do you view it?

Post by Chuck107 »

.....
Last edited by Chuck107 on Sun Oct 04, 2020 6:09 pm, edited 1 time in total.
Alas, I find moderation of this forum too restrictive for my tastes, farewell.
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CyclingDuo
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Re: If you have a pension, how do you view it?

Post by CyclingDuo »

marti038 wrote: Fri Oct 02, 2020 9:44 amPersonally, I don't account for it in our retirement planning. I suppose I'm pessimistic about the likelihood of it still being around in 20 years or so. Same for SS.
Why even take a job that has a pension benefit that you have to pay into in the first place if you don't think it will be there in 20 years? Why not switch to a job/company that has no pension?

CyclingDuo
"Save like a pessimist, invest like an optimist." - Morgan Housel
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gr7070
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Re: If you have a pension, how do you view it?

Post by gr7070 »

Yooper wrote: Fri Oct 02, 2020 10:10 am . Everything worked out alright - so far.
You still in the U.P.? Whereabout?
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