Im curious to see how many of you have pensions. I am a partner with SCPMG and have the "Common Plan", which is basically our pension plan. This is calculated based on the highest average compensation (HAC) during a 36 month period and the years of service. . The formula is as follows: (2% x HAC x years of service for the 1st 20 years) + (1% X HAC X years of service over 20 years). In essence if you work for 30 years, you will get 50% of HAC.
So if your HAC was 30K a month and you work for 30 years, the monthly payment will be 15k a month. This is one of the main reasons I joined this group.
For those who have a pension, how does this change your lifestyle and investment habits? Do you invest more aggressively knowing you have this money coming later in retirement? Do you spend more and save less? In general how do you calculate the value of this pension into retirement planning? Using the example above, a 15K month single life annuity is probably worth about 3.5M dollars in value for someone my age. Would you consider this pension the same as having a 3.5M retirement fund?
Thanks in advance for your thoughts.
So if your HAC was 30K a month and you work for 30 years, the monthly payment will be 15k a month. This is one of the main reasons I joined this group.
For those who have a pension, how does this change your lifestyle and investment habits? Do you invest more aggressively knowing you have this money coming later in retirement? Do you spend more and save less? In general how do you calculate the value of this pension into retirement planning? Using the example above, a 15K month single life annuity is probably worth about 3.5M dollars in value for someone my age. Would you consider this pension the same as having a 3.5M retirement fund?
Thanks in advance for your thoughts.
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